Another Record Setting Month On Wall Street

Another Record Setting Month On Wall Street – Week In Review

Dec 02, 2017Jeremy ParkinsonFinance0

The market remains exceptionally strong as the bulls remain in clear control. Stocks refuse to fall in a meaningful fashion. Every time the market hints at pulling back the bulls show up and send stocks soaring.

The two largest “down” days this year happened on June 9 and then last Wednesday, November 27. Both of those days happened on the Nasdaq while other big cap growth stocks sold off in heavy volume. Normally, that marks a near-term high but not in THIS market. Stocks soared on Thursday and the Dow topped 24,000 for the first time ever which was a few days after the S&P 500 topped 2,600. At this point, the market is very extended to the upside and way overdue to pullback. Until it does, weakness should be bought, not sold.

A Closer Look at What Happened Last Week

Mon-Wed Action:

Stocks ended mixed on Cyber Monday as investors waited to see the results of the first real holiday shopping weekend of the season. So far, the data showed online Black Friday sales rose close to +17% from the same period last year. Meanwhile, Cyber Monday sales also rose double digits vs 2016 numbers.

Stocks rallied sharply on Tuesday, with the Dow jumping 255 points, after the U.S. Senate moved closer to passing tax reform. Goldman Sachs expects a 50% chance tax reform is accomplished this year and an 80% chance it gets done in 2018. Stocks ended mixed on Wednesday but the Nasdaq, and a slew of growth stocks, fell hard and dragged the market lower. Before the open, the government released the second estimate of US Q3 GDP which came in at +3.3%, beating estimates for a gain of +3.2%. In other news, Bitcoin surged above 11,000 24 hours after it broke above 10,000. If that’s not a climax run, I don’t know what is.

Thur & Fri Action:

Stocks soared on Thursday, with the Dow rallying over 300 points after it looked like the Senate would pass the tax cut. After the close, the Senate pushed the vote back because they were still lobbying some members. Stocks fell on Friday after a few negative headlines emerged regarding the ongoing Russia investigation.