The current upward trend in stock prices,starting on October 16th is the most spectacular in history, with 1.630Pts increase for the Dow Jones Index in 14 sessions (the previous record of 1.880Pts movement was in October 2011, but it took four full weeks).
As soon as the positive trend got going, sellers disappeared from the scene, fearful of being crushed by the bull bulldozer driven by central banks. Where it will stop, who knows?
But one thing is for certain, the US Dollar is key to all this madness.
Wall Street also welcomed, in its own way, the crushing electoral defeat that offers both rooms to the Republicans (and New York traders are mostly conservative or very conservative). But the fight between Congress and the White House has no reason to stop.
The rise of S&P500 was done this time with the support of oil and oil-related values, including Devon + 10% + 7% Chesapeake, EOG + 6.5% + 5.2% Diamond Offshore , QEP + 5%, + 4.8% Peabody, Southwest Energy and Range Resources + 4.4% + 3.5% National Oilwell, Anadarko and Halliburton + 2.4%.
Nasdaq ended flat despite a long list of stocks falling, like Tripadvisor -14.1%, -4.5% Newmont Mining, Gilead -3.35% Tesla -3.3%, -2.2% Vertex, not to mention the ‘heavyweight’ as Baidu -1.8%, -1.6% Intel, Google -1.5%, -1.2% Facebook, Regeneron -1%.Previous Post » Dow Jones Holds Firm Despite Holiday