Expecting The Trump Stock Rally to Extend into the New Year

Expecting The Trump Stock Rally to Extend into the New Year

Expecting The Trump Stock Rally to Extend into the New Year

$DIA, $SPY, $QQQ, $VXX

UU stocks are expected to keep rising in Y 2018 because a massive drop in the corporate tax rate is seen boosting the economy and corporate profits

The Bull Market is on track to mark its 9th birthday on 9 March, with the S&P 500 climbing 19.4% for Y 2017, its biggest increase since Y 2013.

The drop in the US corporate tax rate in Y 2018, to 21% from 35%, is seen as the biggest factor for the stock market in the New Year.

Y 2018 share gains are expected to be smaller than in Y 2017 with the S&P 500’s PE/R (price/earnings ratio) is around its highest marks since June 2002.

Wall Street sees no signs of a recession.

Some strategists cite the risk that faster economic growth could cause inflation to increase at a pace that would lead the Fed to raise interest rates faster than expected.

But, remember Econ 101: No inflation, No growth.

The Citi Economic Surprise index was at 77 Thursday, not far from its almost 6-year high of 84.5 reached on 22 December

Investors will keep a close watch on the on US mid-term elections in Y 2018 because a Republican loss of control of the Senate or the House of Representatives could stall the party’s agenda.

Notably, in 10 of the last 17 US mid-term election years, equity price moves for the full year followed January’s direction, according to the Stock Trader’s Almanac.

Investor moods in January may depend on whether the Congress reaches an agreement to raise the country’s debt ceiling. Investors will also be hoping Congress can reach a Y 2018 budget pact by 19 January.

Friday, the major US stock market indexes finished at: DJIA-118.29 at 24719.22, NAS Comp -46.77 at 6903.39, S&P 500 -13.93 at 2673.61

Volume: Trade on the NYSE came in at: 710-M/shares exchanged

  • NAS Comp: +28.2% YTD
  • DJIA: +25.2% YTD
  • S&P 500: +19.4% YTD
  • S&P Midcap 400 Index: +14.7% YTD
  • Russell 2000: +13.4% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.61) Bullish (0.35) Very Bullish (0.81) Very Bullish (0.67)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Very Bullish (0.51) Bullish (0.35) Very Bullish (0.60) Very Bullish (0.58)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.39) Neutral (0.19) Very Bullish (0.50) Bullish (0.47)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.46) Very Bearish (-0.59) Very Bearish (-0.57) Neutral (-0.21)

Remember, always pay attention, take what the market gives, it is your money, your responsibility.

Have a Happy New Year!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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