DJIA Post Another Record, Investors See Tax Cuts Ahead

DJIA Post Another Record, Investors See Tax Cuts Ahead

DJIA Post Another Record, Investors See Tax Cuts Ahead

$DIA, $SPY, $QQQ, $VXX

The DJIA marked aother record high Monday, with banks and retailers surging and tech falling as investors realigned their portfolios in hopes of benefiting from expected corporate tax cuts.

The S&P 500 ended with a small loss after hitting an intra-day all-time high on the day, while the technology-heavy NAS Comp dropped 1.05%.

Bank of America, (NYSE:BAC), JPMorgan Chase (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), and Citigroup (NYSE:C) rose over 2% after the US Senate approved its tax bill early Saturday.

This will likely result in increased dividends and share repurchases, and that makes valuations more reasonable and should extend The Trump Rally.

Investor money rotated out of techs to buy banks, department stores and other stocks seen benefiting from lower taxes by selling technology stocks, which have become relatively expensive after leading the market’s gains this year.

People are rotating into consumer discretionary and away from technology because of tax advantages from the new bill.

Monday, the US major stock market indexes finished at: DJIA +58.46 at 24290.05, NAS Comp -72.22 at 6775.35, S&P 500 -2.78 at 2639.44

Volume: Trade on the NYSE came in at: 987.2-M/shares exchanged.

Breadth: Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on NAS, a 1.27-to-1 ratio favored decliners.

  • NAS Comp +25.9% YTD
  • DJIA +22.9% YTD
  • S&P 500 +17.9% YTD
  • Russell 2000 +12.9% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.65) Bullish (0.40) Very Bullish (0.85) Very Bullish (0.71)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Very Bullish (0.53) Bullish (0.31) Very Bullish (0.69) Very Bullish (0.58)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.57) Bullish (0.44) Very Bullish (0.60) Very Bullish (0.67)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.40) Bearish (-0.35) Very Bearish (-0.56) Bearish (-0.29)

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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