The Pro-Business Trump Rally Drives Stocks to Record Heights

The Pro-Business Trump Rally Drives Stocks to Record Heights

The Pro-Business Trump Rally Drives Stocks to Record Heights


Wednesday, the DJIA and S&P 500 notched new record highs, as stocks continued their drive due North after the election of Donald Trump as US President, and a new high for the DOW transports added to the Bullishness.

All 3 major US stock indexes finished more than 1% higher.

US stocks have marked new highs since Donald Trump’s election, with investors encouraged by his plans for economic stimulus and to reduce corporate taxes and regulations.

Gains were broad-based with 10 of 11 major sectors in the Green.

The DJIA + 297.84 points, or 1.55% at 19,549.62

The S&P 500 + 29.12 points, or 1.32% at 2,241.35 (a new closing high for the 1st time since 25 November )

The NAS Comp + 60.76 points, or 1.14% at 5,393.76.

The Dow Transports +2.5% and set new all-time intra-day and closing highs, surpassing its prior peaks from late 2014.

Note: the finish above the closing record for the transportation average could indicate further gains as it triggers a Bullish sign for some investors who look for parallel performance for both the DJIA and the Dow Transports.

Dow Theory has been confirmed and he programs will initiate buy orders, which creates more fuel for the Trump Rally.

Wednesday afternoon  $3-B trading program to buy a broad spectrum of stocks also came into the market and sparking this market to move due North.

Traders also pointed to covering of short positions ahead of Thursday’s meeting of the European Central Bank (ECB) as a catalyst driving the market higher.

Donald Trump’s victory is a “boon”, particularly for financial and industrial stocks that have risen since the election.


About 8.2-B shares changed hands in US exchanges, above the 8-B daily average over the last 20 sessions.

Advancing issues outnumbered decliners on the NYSE by a 3.31-to-1 ratio; on Nasdaq, a 1.80-to-1 ratio favored advancers.

The S&P 500 posted 98 new 52-wk highs and just 7 new lows; the Nasdaq Composite recorded 350 new highs and 32 new lows.

  • Russell 2000 +20.6% YTD
  • DJIA +12.2% YTD
  • S&P 500 +9.7% YTD
  • NAS Comp +7.7% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.52) Bullish (0.48) Very Bullish (0.60) Bullish (0.47)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.17) Bullish (0.48) Neutral (0.19)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.50) Very Bullish (0.50) Very Bullish (0.54) Bullish (0.44)
HaffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.48) Very Bearish (-0.53) Bearish (-0.44) Bearish (-0.46)

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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