The 48^th Dow record this year.

In my 27 plus years as a trader, I have witnessed many extraordinary market events.  However, I have to say that this year is one of the most amazing.  According to the news, President Trump is the most hated president in history yet since his election the market continues to leap higher with confidence.  Yesterday marked the 48^th Dow record this year, and the other indexes have followed setting record after record.

As earnings season begins, it now falls to the companies to prove their results can support these high prices.  Personally, I think they will.  Market analysts expect to see 11% growth in company revenues this year.  What’s really surprising is they expect another 11% growth next year as well.  If that actually comes to pass, then this trend could easily keep going up for the foreseeable future.  As I said before, Amazing!

On the Calendar

We kick off the Thursday Economic Calendar at 8:30 AM Eastern with the weekly Jobless Claims followed directly by the PPI-FD report.  Consensus has Jobless claims easing slightly from 260k to 252k this week, but impacts from Puerto Rico are still a wild card.  The Sept. PPI consensus expects a gain of 0.4% overall reading.  At 11:00 AM we get the latest reading from the EIA Petroleum Status Report.  Most are continuing to expect rising demands to diminish supplies.  We have 3 Fed Speakers and several non-market moving reports today with the Treasury Budget at 2:00 PM to round out the day.

The 4^th Quarter Earnings Season officially kicks off today with reports from C and JPM before the market opens.  Earnings reports will ramp up sharply next week so make sure your checking before placing new trades.

Action Plan

The DIA, SPY, and QQQ’s all closed at new record highs yesterday despite very slow and choppy price action.  The market had little to no reaction to the FOMC minutes yesterday which was quite odd.  That would suggest all the pressure now falls to the big bank reports today and tomorrow.  In a rising rate environment, one would expect the banks to report well, but as you know, anything is possible.

Futures are currently suggesting a flat to slightly lower open as I write this but as the earnings reports come out that could certainly change quickly.  As we head into the weekend, I am thinking some profits into the market strength.  I will also look for new long trade entries to take advantage of the uptrend.  As always I will avoid chasing and favor stocks that are at or near price support levels.

Trade Wisely,

Doug