March came in like a lion, as the post-election Trump stock market rally continued to have strong upward momentum. All five major equity averages set all-time intraday highs on March 1. On March 6, I began to be concerned about the negative divergence on Dow Transports. On March 9, I warned to "Beware the Ides of March on the Eighth Anniversary of the March 9, 2009, Lows." I said it was time to reduce holdings in the stock market.
My reasons for concerns included: Delays in repeal and replacement of Obamacare, Debate on raising the debt ceiling, and how to pay for infrastructure spending, border wall. Continued sharp declines in oil prices, and the pending rate hike by the Federal Reserve on March 15.
On March 13, my concerns included a negative divergence in the Russell 2000.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.