Expecting The Trump Stock Rally to Extend into the New Year
$DIA, $SPY, $QQQ, $VXX
UU stocks are expected to keep rising in Y 2018 because a massive drop in the corporate tax rate is seen boosting the economy and corporate profits
The Bull Market is on track to mark its 9th birthday on 9 March, with the S&P 500 climbing 19.4% for Y 2017, its biggest increase since Y 2013.
The drop in the US corporate tax rate in Y 2018, to 21% from 35%, is seen as the biggest factor for the stock market in the New Year.
Y 2018 share gains are expected to be smaller than in Y 2017 with the S&P 500’s PE/R (price/earnings ratio) is around its highest marks since June 2002.
Wall Street sees no signs of a recession.
Some strategists cite the risk that faster economic growth could cause inflation to increase at a pace that would lead the Fed to raise interest rates faster than expected.
But, remember Econ 101: No inflation, No growth.
The Citi Economic Surprise index was at 77 Thursday, not far from its almost 6-year high of 84.5 reached on 22 December
Investors will keep a close watch on the on US mid-term elections in Y 2018 because a Republican loss of control of the Senate or the House of Representatives could stall the party’s agenda.
Notably, in 10 of the last 17 US mid-term election years, equity price moves for the full year followed January’s direction, according to the Stock Trader’s Almanac.
Investor moods in January may depend on whether the Congress reaches an agreement to raise the country’s debt ceiling. Investors will also be hoping Congress can reach a Y 2018 budget pact by 19 January.
Friday, the major US stock market indexes finished at: DJIA-118.29 at 24719.22, NAS Comp -46.77 at 6903.39, S&P 500 -13.93 at 2673.61
Volume: Trade on the NYSE came in at: 710-M/shares exchanged
- NAS Comp: +28.2% YTD
- DJIA: +25.2% YTD
- S&P 500: +19.4% YTD
- S&P Midcap 400 Index: +14.7% YTD
- Russell 2000: +13.4% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Very Bullish (0.61)||Bullish (0.35)||Very Bullish (0.81)||Very Bullish (0.67)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Very Bullish (0.51)||Bullish (0.35)||Very Bullish (0.60)||Very Bullish (0.58)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.39)||Neutral (0.19)||Very Bullish (0.50)||Bullish (0.47)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.46)||Very Bearish (-0.59)||Very Bearish (-0.57)||Neutral (-0.21)|
Remember, always pay attention, take what the market gives, it is your money, your responsibility.
Have a Happy New Year!