The US Economy Growing Under President Trump’s Policies

The US Economy Growing Under President Trump’s Policies

The US Economy Growing Under President Trump’s Policies

$DIA, $SPY, $QQQ, $VXX

  • US economy growing under US President Trump’s developing economic policies.

Nevertheless stock market pessimists are warning investors to moderate their optimism over President Donald Trump’s proposed tax cuts.

Stocks raced to records last week and again this week, the USD hit a 2-month high and 10-yr UR Treasury yields rose to 3-month highs after The Trump Administration and congressional leaders announced a framework that would lower the corporate tax rate.

Now, some analysts sees a tax trade that has gotten ahead of itself. And are voicing skepticism on whether the plan will become law anytime soon

The excitement surrounding tax cuts echoes the contours of a post-election rally that has The Trump Rally extending on an almost daily basis.

Small cap stocks, which gain more from lower tax rates, closed at 7 consecutive records through Tuesday.

A Goldman Sachs Group Inc. (NYSE:GS) basket of the 50 stocks in the S&P 500 Index with the highest 10-year median effective tax rate gained 1.1%, compared to 0.6% for the lowest tax rate stocks.

Though economic data has improved, expectations of a tax bill passing by early Y 2018 fueled the move.

US stocks moved higher for the 6th session running Tuesday on quiet trade, The DJIA (+0.4), the S&P 500 (+0.2%), the NAS Comp (+0.2%), and the Russell 2000 (+0.2%) all finished at new record highs.

  • NAS Comp +21.3% YTD
  • DJIA +14.3% YTD
  • S&P 500 +13.2% YTD
  • Russell 2000 +11.4% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.54) Very Bullish (0.65) Very Bullish (0.50) Bullish (0.49)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.49) Very Bullish (0.54) Bullish (0.44) Very Bullish (0.50)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.15) Bullish (0.31) Bullish (0.39)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.46) Bearish (-0.43) Bearish (-0.29) Very Bearish (-0.67)

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.

Latest posts by Paul Ebeling (see all)

You must be logged in to post comments :  
CONNECT WITH