Stocks Soar on Trump's 1st Week in Office
The bulls have been waiting for a catalyst to send the Dow above 20k and it turned out to be Trump’s first week in office. The Dow broke above 20k and the S&P 500 briefly broke above 2,300 over the past few days. The key now is to see if the gains can hold. Elsewhere, the Nasdaq and Nasdaq 100 both hit fresh record highs while the small-cap Russell 2000 is still consolidating its very strong post-election gain.
Since Trump won the election the market has been in a very bullish state. The bullish backdrop occurred when a very easy monetary policy (from global central banks) collided with a bullish fiscal policy. Moving forward, until we see any significant selling, this trading window (bullish state), clearly suggests weakness should be bought, not sold. I would be remiss not to note that the major indices are getting extended and a nice light volume pullback would do wonders to restore the health of this market.
Since Trump won the election the market has been in a very bullish state. The bullish backdrop occurred when a very easy monetary policy (from global central banks) collided with a bullish fiscal policy. Moving forward, until we see any significant selling, this trading window (bullish state), clearly suggests weakness should be bought, not sold. I would be remiss not to note that the major indices are getting extended and a nice light volume pullback would do wonders to restore the health of this market.