U.S. stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.

Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.

The Standard & Poor's 500 Index is up 5.4 percent this year and above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average is just 2 percent away from all-time highs reached in October 2007. The Dow ended on Friday at 13,895.98, its highest close since October 31, 2007.

The S&P 500 has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years. (photo & commentary courtesy of Reuters)

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I apologize for my missing last weekend’s blog post, but it couldn’t be avoided. This doesn’t happen very often.

In keeping with the market’s euphoria, this week RSI is straying away from its usual foreign and emerging fund picks. Instead RSI is recommending looking at the following three USA invested funds:

• First Trust Dow Jones Internet Index (FDN)
• iShares Dow Jones Transportation Average (IYT)
• iShares Dow Jones US Home Construction (ITB)

All three funds are connected with Dow Jones Indices and what could be more American? Examine the charts and you will see excellent strength that should point to higher future prices.

I will consider these picks for inclusion into RSI’s portfolio. Currently the portfolio needs more emphasis on American centric holdings and these three fit that bill. After all, the US markets may be “the prettiest horse in the glue factory”. Catch you next weekend.