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)|
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