Market Direction Mid Week: Trump Impeached

The trading strategy this website uses as its signature tool is our bullish and bearish alerts. This indicator has effectively been used with accuracy since 2011. The website helps our followers stay in tune with the stock market and profits have been amazing. This post provides a mid-week update on how the stock market has preform. At the bottom of this post are the all-time numbers since the current alert was made. The current bullish alert is moving in the right direction.

Market Direction: BULLISH alert issued 10/24/2019

Can the stock market keep climbing higher?

Click the Thumbs Up or Thumbs Down in the upper right sidebar. 

Subscribe and share with friends.

U.S. stocks finished mixed Wednesday as only the Nasdaq Composite was able to extend its winning streak with the boost in sentiment from a preliminary U.S.-China trade deal tailing off by the end of the session.

The likely impeachment of President Trump by the U.S. House of Representatives in Washington later Wednesday held little risk for investors, analysts noted. 

What are major indexes doing?

The Dow Jones Industrial Average DJIA, -0.10%  fell 27.88 points, 0.1%, to close at 28,239.28, while the S&P 500 SPX, -0.04% shed 1.38 points, less than 0.04%, to finish at 3,191.14. The Nasdaq Composite Index COMP, +0.05%   was up 4.38 points, less than 0.05%, to end at 8.827.73, a new record close.

The Nasdaq saw its fifth consecutive record close, the longest record streak since January 2018.

Major indexes scored their fifth straight gain Tuesday, with all three logging the latest in a series of record finishes, albeit after modest gains. The Dow on Tuesday rose 31.27 points, or 0.1%, to end at 28,267.16, while the S&P 500 eked out a gain of 1.07 points, or less than 0.1%, to finish at 3,192.52. The Nasdaq Composite closed at 8823.36 after a gain of 9.13 points, or 0.1%. 

What’s driving the market?

The U.S. - China trade deal announced Friday has provided intermittent support for equities this week, as it partially rolls back some existing tariffs on Chinese imports and scraps plans for additional levies ahead of a Dec. 15 deadline. While it could benefit American farmers, skepticism lingers over the targets set by U.S. negotiators.

 “In the absence of fresh details on the terms of the deal or when it is expected to be signed, there was some nervousness in the markets,” said Raffi Boyadjian, senior investment analyst at XM, in a note. “However, even without any new drivers, the injection of positive sentiment from the announcement of the deal is likely to be enough to last till the end of the year as trading winds down during the Christmas and New Year period.” 

In an interview with Fox Business on Tuesday, Robert Lighthizer, the U.S. Trade Representative, also suggested the Trump administration was ready to escalate its trade confrontation with the EU, potentially through new tariffs, after sealing a truce with China and enacting the USMCA agreement with Canada and Mexico to replace NAFTA.

Meanwhile, investors appeared less gloomy over global economic prospects. A gauge of German business sentiment, the Ifo business-climate index, came in at a stronger-than-expected 96.3 points Wednesday morning, rising from an upwardly revised 95.1 in November and topping forecasts for a reading of 95.5.

While stocks are supported by the partial resolution of the U.S. - China trade war this week, the Federal Reserve is also greasing the wheels of the rally by providing extra liquidity for banks. The U.S. central bank’s efforts to restore calm to financial markets in the aftermath of a sudden spike in short-term borrowing costs in mid-September has proven to be successful, said New York Fed President John Williams on Wednesday.

See also: Most stock investors think the Fed has restarted emergency stimulus, despite denials, says RBC survey

Investors so far remain largely unfazed by impeachment proceedings against President Donald Trump led by House Democrats. The House is widely expected to vote in favor of two articles of impeachment against the president late Wednesday, setting the stage for a trial in the Republican-controlled Senate, which is viewed as likely to acquit Trump.

Read: Here’s what’s happening next in Democrats’ effort to impeach President Trump

 

Check out: Why stock investors are keeping calm about impeachment — and what it would take for that to change

“Chalk up one more reason why U.S. equity markets have the wind in their sails just now,” said Nicholas Colas, co-founder of DataTrek Research. “The odds of a distracting political contretemps in 2020 are diminishing. The 2020 Presidential race, at least by current measures, is shaping up to be more about personalities (Trump vs. Biden) than a vote on U.S. economic norms. That said, there’s plenty of time for things to change. But that’s where things are today.”

What are other markets doing?

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, -0.86%  rose 3 basis points to 1.93%.

The price of crude oil ticked lower, with January futures for West Texas Intermediate crude CL00, -0.05%   down a single cent to settle at $60.93 a barrel on the New York Mercantile Exchange. 

The price of an ounce of gold for February delivery GCZ19, +0.22%   fell $1.90, or 0.1%, to settle at $1,478.70.

The U.S. dollar DXY, -0.09%   rose 16 cents, 0.2%, against a basket of its major peers.

In Europe, the STOXX Europe 600 SXXP, -0.13%  was down 0.1% to 414.38. The U.K. FTSE 100 UKX, +0.21%   was about 15 points, 0.2%, higher.

In Asia overnight, the China CSI 300 000300, -0.32%  was little changed at 4,032, Hong Kong’s Hang Seng Index gained 40.50 points, 0.2%, and Japan’s Nikkei NIK, -0.41%    tumbled 131.69 points, 0.6%.

Related: Here’s what may drive stocks even higher (hint: not the trade war or the Fed)

$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 friends.

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

Stock Market Direction Recommendation (10/24/2019)
Dow	up 1,531.96 points a 5.72% gain	12/16/19
Nasdaq	up 662.96 points a 8.10% gain	12/18/19
S&P 500	up 188.19 points a 6.25% gain	12/18/19

Related Link: http://www.stockmarket-direction.com/