Market Direction Mid Week Update©

Market Direction: BULLISH alert issued 11/10/2016

23,000 and counting... 

A resurgence in the so-called Trump trade helped propel the Dow Jones Industrial Average to a fresh closing milestone.

This time the most well known and oldest U.S. equity benchmark closed above 23,000 for the first time ever, notching its fourth straight 1,000-point climb over the past 12 months. That marks the largest number of such 1,000 point moves within a calendar year in the benchmark’s 120+-year history, according to WSJ Market Data Group.

The Dow DJIA, +0.70%  hit the milestone in intraday trade on Tuesday, finished above that level in Wednesday trade, notching its third fastest climb to 1,000-point milestone since mid July (see table below).

To be sure, the higher the Dow rises, the smaller each 1,000-point move is in percentage terms, but the climb to all-time highs has captured public attention, even if some market strategists and bears are concerned that valuations have gotten too lofty, too fast. 

Dow milestones	1st close above that level	Dow final close	No. of trading days to milestone (ranking)
23,000	Oct. 18, 2017	23.157.60	54 (3)
22,000	Aug. 2, 2017	22,016.24	107
21,000	March 1, 2017	21,115.55	24 (1)
20,000	Jan. 25, 2017	20,068.51	42 (2)
19,000	Nov. 22, 2016	19,023.87	483
18,000	Dec. 23, 2014	18,024.17	120
17,000	July 3, 2014	17,068.26	153
16,000	Nov. 21, 2013	16,009.99	139
15,000	May 7, 2013	15,056.20	1,460
14,000	July 19, 2007	14,000.41	59 (4)
13,000	March 25, 2007	13,089.89	127
12,000	Oct. 19, 2006	12,011.73	1,879
11,000	May 3, 1999	11,014.69	24 (1)
10,000	March 29, 1999	10,006.78	246
9,000	April 6, 1998	9.033.23	182
8,000	July 16, 1997	8,038.88	105
7,000	Feb. 13, 1997	7,022.44	85
6,000	Oct. 14, 1996	6,010	226
5,000	Nov. 21, 1995	5,023.55	189
4,000	Feb. 23, 1995	4,003.33	975
3,000	March 17, 1991	3,004.46	1,080
2,000	Jan. 8, 1987	2,002.25	3,573
1,000	Nov. 14, 1972	1,003.16	21,652

So, why is the market headed higher?

Some of the recent gain has been attributed to optimism around President Donald Trump’s tax plan. That enthusiasm centers on the belief that he will implement Wall Street-boosting measures, ike deregulation and tax cuts, that will pave the way for a further clamber higher for risk assets.

Check out: Low stock volatility won’t last forever, but the quiet may not end quickly

Since the 2016 election, won in shocking fashion by Trump over Democratic rival Hillary Clinton, the Dow has climbed 26%, the S&P 500 index SPX, +0.07% has advanced almost 20%, the Nasdaq Composite Index COMP, +0.01% has returned about 28%, and a popular index of small companies, the Russell 2000 index RUT, +0.51% has climbed more than 26%. That’s as of Wednesday afternoon trade.

Read: Why stock market records may just be a mirage caused by dollar weakness.

Slightly rosier economic indicators of late, domestically and abroad, and upbeat expectations for corporate results, even if the bar tends to be lowered, also have helped buoy equity indexes.

It is no wonder why Wall Street investors are pointing at signs of a so-called meltup in stocks, and heralding the uncanny rise of assets in every sector, region and class.

Perhaps the biggest question is how rising rates off ultralow levels, as the Federal Reserve continues to tightening monetary policy, lifting borrowing costs on individuals and companies, will eventually affect this unabated rally.

$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at  $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, email us. Share with a friend.

The all-time highs since our initial recommendation to go LONG this market. Here is how the markets have performed:

Stock Market Direction Recommendation (9/21/2017)
Dow	up 813.70 points a 3.64% gain	10/18/17
Nasdaq	up 212.83 points a 3.31% gain	10/18/17
S&P 500	up 63.51 points a 2.54% gain	10/18/17

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