Dow breaks 12-day record streak ahead of Trump speech; retail down

The 12-day record streak that we hadn’t seen since 1987 ended today when the Dow turned down a modest 25 points as investors sit on the fence waiting for Trump’s speech, hoping for some more optimism, hoping for some details.  Or are they?  Some experts think that many investors won’t care if no details are forthcoming after all and, of course, the smart money says there won’t be.  Still, the index has had an impressive run, up nearly 5 percent in just a month.  Volume was considerably above average at nearly 8 billion shares traded.

Dow hits 12th record high close; Trump talks up infrastructure spending

A modest 15 point bump in the Dow gave the index its 12^th consecutive new record high, matching a 12-day run from 1987.  Initiating events included Trump’s statement concerning a big 9% proposed boost in military spending, sending defense stocks up, and a hopeful expectation that Tuesday night’s speech before the Congress will yield the much anticipated details about his promises to overhaul the tax system.  Investors are very much banking on a clearer picture tomorrow; if more clarity is not to be had, there may be a change in the tide.  Volume was 6.8 billion.   

Succinct Summation of Week’s Events 2.24.17

It's that time of the week again so please find below the customary summary of the week's events courtesy of Barry Ritholtz and his "Big Picture" blog.  Hope everyone had a great weekend.

10 Weekend Reads -- 2/25/17

Since I have now returned to daily postings on this Marias blog, I will return to the tradition I established a couple years ago of filling in the weekends with snippets of wisdom from my favorite financial writer, Barry Ritholtz of "The Big Picture," a column he publishes in both the Washington Post and Wall Street Journal.  One thing he does every week is cull all the most fascinating and pithy articles of that given week and then grace us with a brief reading list every weekend.  I begin that tradition again so below please find this weekend's list of good reads courtesy of Mr. Ritholtz.

Wall Street edges higher to give Dow 11th straight record

After dropping 60 points right out the gate and continuing to drop almost a hundred throughout the session, there was a last minute reprieve which recouped the losses and the Dow was actually up 11 points at close.  All of this is evidence that investors remain hesitant over the uncertainties in Trump’s economic policies and therefore keep the markets selling and buying like crazy hour by hour.  At this time, optimism is winning out over results and that will be fine as long as results are ultimately forthcoming.  And once again, closing up put the Dow at still one more consecutive record breaking close, now its 11^th, a record not seen since 1987.  At 6.7 billion, volume was very close to recent averages. 

S&P 500 inches up after Trump jobs pledge

Another modest 34 point bump to the Dow, this time spurred by a meeting between Trump and major company CEOs about bringing millions of off shore jobs back to the U.S.  As usual, details are lacking and investors are likely to hold back on more enthusiasm until more specifics are in hand, but for now it was enough for yet another bump, the 10^th in a row and the 10^th record high in a row, something not seen since 1987.  But all of this will end if the details prove unsatisfying.  Right now, the historic rally has all been based on hopes.  When reality sets in, it will either be very good or very bad.  The 7.1 billion share volume is higher than the 6.8 billion 4-week average.    

Subj: What's Your "Trump Contingency Plan?"

This article, published yesterday by Heritage Capital Research, is very timely and offers a fresh perspective on objective strategizing that bears oft repeating, and certainly fits in with this whole subject of behavioral finance of which we are so fond.  Alexander Elder would be proud.