Hello traders everywhere. Luckily for us the old saying "New Year, New Me" doesn't seem to apply to the U.S. market as the DOW surpasses the 25,000 mark for the first time ever and the other major indexes soon followed, posting new records as well. This record breaking move higher was propelled by strong U.S. private jobs numbers that added to a stream of robust economic data from across the world.
President Donald Trump even weighed this morning by proclaiming that his new number for the DOW is 30,000. What do you think? Will the DOW hit 30k before then end of 2018? Or are we due for a major correction?
Key levels to watch this week:
S&P 500 (CME:SP500): 2,673.61
Dow (INDEX:DJI): 24,697.11
NASDAQ (NASDAQ:COMP): 6,907.01
Gold (NYMEX:GC.G18.E): 1,304.60
Crude Oil (NYMEX:CL.F18.E): 60.10
U.S. Dollar (NYBOT:DX.H18.E): 93.82
Bitcoin (CME:BRTI): 12,291.06
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
Trump is the most respected seer of all time.Whatever he says or touches turns to Gold. Down will be 30,000 in 15 months. Up,up and away! Less taxes and more consumer confidence.
Think in terms of percentages, not points.
Please don't get hung up on 45's prediction of DJIA 30,000 this year. 5,000 points are only 19% higher than where we are now. Furthermore, the dividend discount value today is 43,158 which is 59% higher than the price. Although it might be a bit of a stretch for this year it is quite conceivable that 40,000 could be reached next year. That would be an increase of 59%. Considering that the DJIA price has risen by 61% since February 2016 and the rate of increase is accelerating it is quite possible that we will be there in 2019. In which case the Donald will be set for re-election in 2020.
As for inflation. Remember when inflation was seen as good for equities in the 1970s?
The DJIA moved up strongly in 1979 and 1980 when rates rose and the 30 year T bond yield hit 15.2 %
See Charts 3 and 4 in the following article:
https://seekingalpha.com/article/4131546-re-balancing-slowing-rise-djia-price-santas-way
Deja Vue?
Kind regards
equity markets rising is not a positive but rather validates the flow of money OUT of gov bonds and into some type of equity position. as the US dollar declines, bonds will be worth LESS. the risk/reward is better for a stock vs a bond. venezuela's stock market is a perfect example. 30,000? gimme 45,000 on a melt up over the next 18 months. all corrections will be bot. any correction will be fast, furious, and very short lived. it isnt obvious to the average american what is happening in the nation. once they 'get it', equity will do even better, even faster.
So, Trump is a technician now? Was that bold call based on a measured move or was it a Fib projection? Perhaps a Gann square of nine?