Market Paused, President Trump Spoke, Unprecedented Rally Extends

Market Paused, President Trump Spoke, Unprecedented Rally Extends

Market Paused, President Trump Spoke, Unprecedented Rally Extends

$DIA, $SPY, $QQQ, $VXX, $SNAP

Investors piled into US stocks Wednesday, giving the market its biggest single-day gainer in 3 months, driving the major indexes to record highs again as The Trump Rally extends..

This Bull Market is being lead by the Big Banks on expectations that an improving economy will lead to higher interest rates.

Energy stocks also posted big gainers.

Utilities and real estate stocks lagged.

The USD strengthened against the JPY, EUR and other peer currencies.

Bond prices fell, as did the price of Crude Oil and Gold.

Optimism over corporate tax cuts, deregulation and other business-friendly policy proposals reiterated by President Donald Trump during his speech before Congress Tuesday night fuel the rally, as the retail (civilian) investors continue to invest in stocks.

The DJIA spiked 303.31 points, or 1.5%, to 21,115.55. At 1 point, the 30-Company average was up more than 356 points. The DJIA had not been up more than 300 points since just after Donald Trump’s election President November.

The Standard & Poor’s 500 index gained 32.32 points, or 1.4%, to 2,395.96. That’s the biggest single-day gain for the index, the benchmark favored by professional investors, since early November, too.

The NAS Comp added 78.59 points, or 1.4%, to 5,904.03.

The Russell 2000 index rose 26.95 points, or 1.9%, to 1,413.64.

Note: Snap, the parent company of the popular messaging app Snapchat, will be priced in its IPO at 17.00/share. The company will begin trading on the NYSE Thursday morning under the ticker ‘SNAP’

Bond prices fell and yields rose after a Key Fed official, New York Fed President William Dudley, said the case for raising interest rates had gotten stronger. The 10-year T-Bond yield rose to 2.46% from 2.40% late Tuesday.

Strong gains in major global stock indexes overnight and into early Wednesday signaled another milestone day for Wall Street.

Wednesday, the major US stock market indexes finished at: DJIA +303.31 at 21115.55, NAS Comp +78.59 at 5904.05, S&P 500 +32.32 at 2395.94

Volume: Trade was heavy on the NYSE as 1.25-B/shares were exchanged

  • NAS Comp +9.7% YTD
  • S&P 500 +7.0% YTD
  • DJIA +6.9% YTD
  • Russell 2000 +4.2% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.12) Bullish (0.34) Bullish (0.38)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.32) Bullish (0.31) Bullish (0.35) Bullish (0.29)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.59) Very Bullish (0.54) Very Bullish (0.65) Very Bullish (0.58)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.35) Bearish (-0.26) Bearish (-0.36) Bearish (-0.42)

Stay tuned…

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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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