The Trump Rally

The Trump Rally
December 31 02:05 2018

Speaking to reporters in the Oval Office this past Tues., Donald Trump praised U.S. companies and said their lower stock prices present an opportunity for investors. “I have great confidence in our companies. We have companies, the greatest in the world, and they’re doing really well. They have record kinds of numbers. So I think it’s a tremendous opportunity to buy.”

According to a Bloomberg report Trump had discussed firing the central bank’s chairman over raising interest rates, but asked about Fed Chairman Jerome Powell, Trump said the central bank is “raising interest rates too fast” but he has “confidence” that the Fed will “get it pretty soon.”

And so what happen the following day, following Christmas,  the Dow Jones Industrial Average on soared by over 1,000 points, erasing its historic Christmas Eve losses to set a new record for the most points gained in one day. The S&P 500 was also higher, rising 4.9%, with the Nasdaq also up 5.8% that day.

The S&P 500 was also higher, rising 4.9%, with the Nasdaq also up 5.8% that day.

Trump and Chinese President Xi meet at the Group of 20 summit in Argentina earlier this month and agreed to suspend U.S. tariffs that had been scheduled to begin in January.  However, days later, investors and the equity markets got concerned again about the validity of the agreement.

But then yesterday President Donald Trump spoke to Xi on Saturday and had the following to say on Twitter.

So is the Trump Rally from last week, just part of the bear market relief rally? Is this Rally going to continue after Trump’s twit on Sat? If the rally continues, the levels I’m watching on the S&P 500 are the Feb and Oct lows and the Dec breakout, all should serve as resistance levels.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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