The Trump Rally is the Longest in History, 396 Days Running

The Trump Rally is the Longest in History, 396 Days Running

The Trump Rally is the Longest in History, 396 Days Running

$SPY

Tuesday, US stocks advanced again, as strong results from Netflix helped lift the S&P 500, and NAS Comp, as the DJIA underperformed.

The S&P 500 has reached a streak of 396 trading days without a 5% pullback.

Netflix (NASDAQ:NFLX) touched a record high at 257.71 and was last up 9.98% at 250.29, to cross the $100-B market capitalization. The video-streaming pioneer beat Wall Street targets for new subscribers in Q-4 Y 2017.

Other stocks in the “FAANG” group; Facebook, Apple, Amazon and Google parent Alphabet also moved higher.

“There has not been another time in this recovery where Main Street was doing well, where every economy in the world was doing well, and where so far there isn’t really an overwhelming show that we have a significant inflation or interest rate problem which would mandate a valuation change,” said chief investment strategist at The Leuthold Group, Minneapolis, Minnesota, USA.

Caution, as this rally continues more challenges mount that could bring on that healthy pullback.

The S&P 500 has closed within 5% of a record in 467 of the past 468 trading days.

S&P 500 earnings growth for Q-4 is expected at 12.4%, according to Thomson Reuters data through Tuesday morning. Of the 68 companies in the benchmark index that have posted results, 76.5% have topped Wall Street expectations.

Monday, US President Trump approved steep import tariffs on washing machines and solar panels, a move that was criticized by China, SKorea and Europe and stoked fears about potential trade retaliation, though really not likely.

Tuesday, the major US stock market indexes finished at: DJIA -3.79 at 26210.81, NAS Comp +52.26 at 7460.28, S&P 500 +6.16 at 2839.13

Volume: Trade on the NYSE finished at: 793-M/shares exchanged

  • NAS Comp: +8.1% YTD
  • S&P 500: +6.2% YTD
  • DJIA: +6.0% YTD
  • Russell 2000: +4.9% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.67) Very Bullish (0.58) Very Bullish (0.73) Very Bullish (0.71)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Very Bullish (0.67) Very Bullish (0.62) Very Bullish (0.77) Very Bullish (0.62)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.49) Bullish (0.38) Very Bullish (0.61) Bullish (0.47)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.42) Neutral (-0.19) Very Bearish (-0.70) Bearish (-0.38)

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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