Things are lining up in favor of the market bulls. How to proceed from here

Stock market bulls are eating well to kick off a new week of trading. Oil is nosediving Monday on news of a memorandum of understanding to end the U.S.-Iran war and reopen the vital Strait of Hormuz. That's improving the inflation outlook and sending bond yields lower — just in time for Federal Reserve Chairman Kevin Warsh 's first policy meeting leading the central bank this week. Plus, SpaceX's massive initial public offering went well, soothing concerns about a deluge of new stock supply pulling down the whole market. The ripple effects could be setting us up for a very nice back half to the year — provided Hormuz officially reopens to oil exports and stays open. Monday's across-the-board stock rally, led by the Nasdaq up 3%, is being driven by optimism that will happen. We'll need to see the follow-through eventually. For now, this landscape Monday is exactly why we've argued that leaving the market — despite all the doom and gloom we hear on a daily basis — is simply too risky . If the U.S and Iran ink a durable peace agreement, it's hard not to be optimistic about the stock market. Sure, the valuation is a bit elevated, with the S & P 500 trading at about 21 times forward earnings, but if oil exports via the Strait of Hormuz are about to restart, then crude prices are set to come down. Of course, they likely won't immediately retreat to where they were before the Feb. …