Following President Trump’s speech the Dow Jones Industrial Average (Dow) easily broke 21,000, and closed at another all-time high – 21,115.
The Dow closed up for the 12th consecutive day on Monday February 27, another three decade record.
Excel calculated the Dow’s daily Relative Strength Index (RSI – 14 period), a technical timing oscillator. It reached 97.75 (maximum = 100.00) on March 1, an exceptionally “over-bought” reading that has occurred nine times since 1950.
The weekly RSI also reached a very high “over-bought” reading as of March 3, the end of last week.
Margin debt recently registered an all-time high on the NY exchange. Price to earnings ratios have risen into “nosebleed” territory, and the last 1% correction in the S&P was in November – a long time ago. Many other market extremes and highs in confidence indexes are evident.
YES, THE EUPHORIA IS PALPABLE!
The Dow reached new highs the normal way – levitated through the creation of massive unpayable debt and the expectation of huge profits (for traders). Daily sentiment has reached a peak and indicates we are at or near a top. Read Bob Moriarty.
Official national debt is nearly $20 trillion. Regardless, President Trump promised something for everyone:
The Dow likes more debt, until reality strikes.
Previous Peaks in the Dow: (National debt in $ billions.)
Date Dow Official National Debt Ratio Dow to Debt
Jan. 1973 1,067 450 2.37
Aug. 1987 2,746 2,330 1.18
