The Trump Rally Drives DJIA to Record 23,157.60

The Trump Rally Drives DJIA to Record 23,157.60

The Trump Rally Drives DJIA to Record 23,157.60

$DIA, $SPY, $QQQ, $VXX

The DJIA marked 23,002 Tuesday intra-day, but closed just below the ’round’ mark. This latest 1,000-point increase was covered in half the time it took the index to move from 21,000 to 22,000.

Wednesday, the US major stock market indexes finished at: DJIA +160.16 at 23157.60, NAS Comp +0.56 at 6624.21, S&P 500 +1.90 at 2561.26

Volume: Trade on the NYSE came in light again Wednesday at: 679-M/shares exchanging hands

Stock Market hits an ALL-TIME high! Unemployment lowest in 16 years! Business and manufacturing enthusiasm at highest level in decades!

 The DJIA rallied strong towards my near term target at 23,250 Wednesday, lifted by IBM’s 9% spike after the computing giant signaled a return to revenue growth.
  • The DJIA rose 162 points or 0.8% to 23,157.60.
  • The Standard & Poor’s 500 index rose 3.9 points or 0.2% to 2,561.26
  • The NAS Comp gained 9 points or 0.1% to 6,624.21.

The S&P and the tech-heavy NAS Comp also hit record highs Wednesday but traded in narrow ranges.

Solid earnings, stable economic growth and notions that President Donald Trump will be able to make progress on tax cuts have helped drive the market rally this year.

We continue to see solid numbers above expectations, stability in terms of economic growth and global growth.

Announcements by the ECB next week and decision by the Fed in December may have an impact on whether or not this Trump Bull continues to run.

The USD rose, tracking higher US Treasury yields, while news on a potential new Hawkish Fed Chairman and the progress of US tax reforms also supported the Buck.

Reviewing Wednesday’s economic data, which included September Housing Starts, the Fed’s Beige Book for October, and the weekly MBA Mortgage Applications Index:

  • Housing starts decreased to a seasonally adjusted annualized rate of 1.127-M units in September (consensus 1.160-M), down from a revised 1.183-M units in August.
  • Building permits decreased to a seasonally adjusted 1.2150-M in September (consensus 1.225-M) from a revised 1.272-M in August.
    • The Key takeaway from the report is that the weakness in starts and permits was concentrated in the South region, which suffered the biggest hit from the hurricanes, so one could reasonably assume that the October report will show better results.
  • The Fed’s Beige Book for October showed that economic activity increased at a modest to moderate pace in all 12 of the Federal Reserve Districts in September through early October.
  • The weekly MBA Mortgage Applications Index increased 3.6% to follow last week’s 2.1% decliner
  • NAS Comp +23.1% YTD
  • DJIA +17.2% YTD
  • S&P 500 +14.4% YTD
  • Russell 2000 +10.9% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.58) Very Bullish (0.56) Very Bullish (0.69) Very Bullish (0.50)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Very Bullish (0.52) Very Bullish (0.54) Very Bullish (0.60) Bullish (0.42)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.39) Bullish (0.46) Bullish (0.31) Bullish (0.40)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.28) Neutral (-0.10) Bearish (-0.35) Bearish (-0.39)

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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