Trump Rally Extends, ‘Sidelined’ Money Coming Back In

Trump Rally Extends, ‘Sidelined’ Money Coming Back In

Trump Rally Extends, ‘Sidelined’ Money Coming Back In

$DIA, $SPY, $QQQ, $VXX

All 3 indexes posted all-time highs, and all 11 major S&P sectors finished higher on the day

US stocks rose to new record highs Tuesday, boosted by strong earnings reports from Wal-Mart and other retailers and continued optimism about the economic agenda of President Donald Trump.

Wal-Mart’s shares were the top stock in the DJIA, rising 3.3% after the world’s largest retailer reported higher-than-expected US sales.

More than 1 in each 6 stocks on the S&P 500 hit a new 52-wk high as a post-Election Trump Rally extended.

The benchmark index has climbed more than 10% since Donald Trump’s November 8th election, fueled by the promise of tax reforms, reduced regulations and increased infrastructure spending.

The S&P is trading at 17.8Xearnings estimates for the next 12 months, above the long-term average of 15X, according to Thomson Reuters Datastream.

There is no doubt that this market has become over-extended and is due for a pullback, but when you have this kind of momentum, it is very hard to sit on the sidelines.

Aside from Wal-Mart, shares of department store operator Macy’s (NYSE:M) and home improvement chain Home Depot (NYSE:HD) rose after their Quarterly reports.

Overall profit for S&P 500 companies is estimated to have risen 7.5% in Q-4, Thomson Reuters I/B/E/S said in a report last Friday.

Tuesday, the major US stock market indexes finished at: DJIA +118.95 at 20743.00, NAS Comp +27.37 at 5865.97, S&P 500+14.22 at 2365.38

Volume: Trade on the NYSE came in at 1.06-B/shrs.

  • NAS Comp +9.0% YTD
  • S&P 500 +5.7% YTD
  • DJIA +5.0% YTD
  • Russell 2000 +3.9% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.26) Neutral (0.10) Bullish (0.31) Bullish (0.38)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.38) Bullish (0.38) Bullish (0.48) Bullish (0.29)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.63) Very Bullish (0.63) Very Bullish (0.69) Very Bullish (0.58)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.25) Neutral (-0.22) Bearish (-0.49) Neutral (-0.03)

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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