The Trump Rally Continues to Notch New Highs

The Trump Rally Continues to Notch New Highs

The Trump Rally Continues to Notch New Highs


Friday, the major US stock indexes drove North record highs, with the S&P 500 ending the week +3%, as investors bid up shares in sectors that have lagged since Donald Trump was elected President of the United States.

The S&P 500 marked a record high for the 3rd session running, as the DJIA and NAS Comp also posted new highs.

The DJIA recorded a 5th straight week of gainers.

US stocks powered up in afternoon trading and finished near session highs.

DJIA +142.04 at 19756.85, NAS Comp +27.14 at 5444.50, S&P 500 +13.34 at 2259.53

Volume: Trade on the NYSE came in at 876.8-M/shares

  • Russell 2000 +22.2% YTD
  • DJIA +13.4% YTD
  • S&P 500 +10.6% YTD
  • NAS Comp +8.7% YTD

Donald Trump’s agenda of economic stimulus, reduced taxes and regulations has particularly fueled financial and industrial shares.

Participants are looking for the momentum to cool off and pullback, and it is not happening. Money managers cash is burning a hole in their pockets and is getting reallocated out of fixed income and into stocks in here, so expect The Trump Rally to power on in the face of that dynamic.

As the market rises, investors have also pointed to a recent run of encouraging economic data supporting equities.

Friday, a preliminary survey from the University of Michigan (MSI) showed the US consumer sentiment index at its highest since January 2015.

US wholesale inventories fell in October on a surge in sales, supporting views that inventory investment would help economic growth in Q-4.

Next week the Fed is expected to raise benchmark interest rates, with market participants looking for clues about the pace of future rate hikes.

HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.45) Bullish (0.40) Very Bullish (0.56) Bullish (0.39)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.43) Bullish (0.46) Bullish (0.48) Bullish (0.36)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.33) Neutral (0.23) Bullish (0.38) Bullish (0.39)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Very Bearish (-0.56) Very Bearish (-0.65) Bearish (-0.33) Very Bearish (-0.71)

Have a terrific weekend.



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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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