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This trend points to more stock gains even as everything around us hits the fan

More blood spilled in the streets of London, more
ridiculous tweets out of the White House and still
more questions raised about how this stock market can possibly
keep up its bullish pace in the face of such an unsettling flow
of news.

There’s a market metaphor somewhere in this tweet:

Anyway, expect investor resilience to be put to the test again
this week. James Comey’s testimony, the U.K. election and the
ECB meeting (along with whatever else) will all pop up later
this week and threaten to throw a spanner of volatility in the
works.

Read: Stock market bracing for potentially the most
explosive stretch of trading this year
.

Still, there’s reason to be optimistic, at least from a
technical perspective. Sure, the market has come a long way
already, but the bull still has legs, according to our
chart of the day from All Star Charts blogger and
Eagle Bay Capital fund manager J.C. Parets.

“We’re breaking out in the S&P 500

SPX,
+0.37%

 above the upper end of this consolidation
from the past three months,” he said. “This is perfectly normal
as consolidations tend to resolve themselves in the direction
of the underlying trend, which in the case of the S&P is
obviously up.”

He also points out that the list of stocks in the broad market
gauge making new highs also broke out, a sign of improving
breadth.

“I see them both still rising,” Parets predicted. “We don’t
have any pivot points to suggest there is any kind of
divergence, yet.”

Nothing in premarket suggest that either.

Key market gauges

Oil prices

CLN7,
-0.06%

jumped, but are now paring the gains, after Saudi
Arabia, Egypt, Bahrain and the United Arab Emirates cut diplomatic ties with Qatar, accusing
the country of meddling in their internal affairs and backing
terrorism.

Futures on the Dow

YMM7,
-0.04%

 and the S&P

ESM7,
-0.06%

 are slightly lower, while gold

GCM7,
+0.22%

 is in the green. Asia

ADOW, -0.22%

 had a mostly subdued session, as did Europe, where major
markets

SXXP, -0.16%

 are inching lower.

The buzz

Barron’s has just released its list of America’s most respected
companies
and, perhaps not surprisingly, Alphabet

GOOG,
+0.89%

Apple

AAPL,
+1.48%

 and Amazon

AMZN,
+1.08%

 lead the way. Berkshire Hathaway

BRK.A,
-0.14%

 isn’t too far behind.

Megyn Kelly made a splash on Sunday night when she
interviewed Vladimir Putin, who downplayed his relationship
with former U.S. National Security Adviser Mike Flynn and
brushed off accusations that Russia meddled in the U.S.
election.

Read: Putin says patriotic Russians may have
tampered with U.S. elections
.

U.S. private equity firm Blackstone Group

BX,
+0.72%

 has made a 1.76 billion euro ($1.98 billion)
takeover bid for real estate investor Sponda Oyj

SDA1V, +20.70%

 sending the Finnish company’s shares surging over 20%.

The call

By 2020, the marijuana industry is expected to topple the
National Football League in terms of revenue, according to
projections from both Arcview Market Research and GreenWave
Advisors.

As it stands now, the weed business would almost need to triple
to make that happen. Keith Speights of The Motley Fool believes
it’s possible, and he offered up a couple picks
positioned to cash in on the big move.

His first pick is Medical Marijuana

MJNA,
-2.49%

which he says “stands out as one of the few U.S.
marijuana stocks that has a reasonably large market cap and
could experience tremendous growth as the size of the marijuana
industry increases.”

But the safest bet? Scotts Miracle-Gro

SMG,
-0.43%

  “The company stands to benefit regardless of
which individual marijuana growers come out on top,” Speights
explained, adding that it could very well “be the marijuana
equivalent of a Super Bowl winner.”

The economy

Thursday is the big day, with the European Central Bank meeting
and, of course, former FBI director James Comey slated to
testify before the Senate intelligence committee. Brits begin
voting in their general election that
day, but any fireworks should come Friday, once the results are
out.

For the most part, however, it’s a relatively quiet week,
data-wise. As for today, the ISM non-manufacturing index hits
at 10 a.m. Eastern, along with the monthly labor market
conditions index.

Read: World Bank expects big economic growth in
2018
.

The quote
ESPN
Films

“That’s like O.J. Simpson saying he’s going to go out and find
the real killer.” — Former Secretary of State John Kerry,
talking on NBC’s “Meet The Press” about
Donald Trump’s plan to perhaps negotiate a better climate deal.

The stat

3 hours, 56 minutes — That’s how long it took Alex Honnold to
become the first human to scale El
Capitan
without any rope or safety equipment.

Random reads

Comedian and Trump hater Bill Maher has said a lot of
controversial things over his career, but this particular comment really drew some
outrage.

Read up on “the myth of the kindly General
Lee.

Phil Mickelson, who is pursuing the rare career Grand Slam,
says he’ll skip the U.S. Open to be
at his daughter’s graduation.

Here are all the powerful messages from
the “One Love Manchester” benefit concert on Sunday.

Celebrities show up to see the Warriors
practice.

$550 million fraud lawyer disappears… maybe heads to Cuba?

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