Trump Rally Extends: DJIA Tops 19,000

Trump Rally Extends: DJIA Tops 19,000

Trump Rally Extends: DJIA Tops 19,000

$DIA, $SPY, $QQQ, $VXX

The DJIA climbed above 19,000 for the 1st time, as US stocks added to gains that pushed four major equity benchmarks to simultaneous records for the first time since & 1999.

Tuesday, the US major stock market indexes finished at: DJIA +67.18 at 19023.87, NAS Comp +17.49 at 5386.35, S&P 500+4.76 at 2202.94

Volume: Trade was moderate with 892.5-M/shares exchanged on the NYSE

  • Russell 2000 +17.3% YTD
  • DJIA +9.2% YTD
  • S&P 500 +7.8% YTD
  • NAS Comp +7.6% YTD

Energy and commodity producers led the Trump rally in stocks Monday, adding to a post-election advance spurred by speculation the new government’s economic policies will boost growth.

The new milestone for the S&P 500 pushed the index to an annual gain of 7.6%, a recovery for a gauge that started the year down as much as 11%.

Donald Trump’s Presidential win has fueled optimism that his pledge to cut taxes and increase fiscal spending will benefit industries more geared to the economic cycle. These new equity records came as American companies ended a 5 Quarter profit slump.

Some stratigists are predicts the S&P 500 will rise another 9.2% by the end of Y 2017. “Stocks are no longer stuck in that frustrating range and we’ve finally broken through to new records. We can move on to pricing in the improving outlook: there are strong signs that the USeconomy is in good shape and that bodes well for corporate earnings.”

Traders have also boosted bets for tighter monetary policy since the vote, on speculation Donald Trump’s policies will lead to higher inflation, note there is no growth without inflation.

After Fed Chairwoman Janet Yellen acknowledged last week the strength in the economy, saying that the central bank is close to raising rates, traders are now pricing in a 100% chance of a move in December.

US markets will be closed Thursday for the Thanksgiving Holiday.

HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.36) Bullish (0.33) Bullish (0.40) Bullish (0.36)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.25) Neutral (0.08) Very Bullish (0.51) Neutral (0.16)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.24) Bullish (0.31) Neutral (0.19) Neutral (0.22)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.35) Bearish (-0.35) Bearish (-0.35) Bearish (-0.33)

 

Stay tuned…

The following two tabs change content below.

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.

You must be logged in to post comments :  
CONNECT WITH