Dow Gains 259, NASDAQ, S&P Set New Record Highs

Since June 27, the NASDAQ has made a strong advance of 572 points, a nifty 7.68% return in two months.

The S&P 500 has tacked on 196 points over the same span, a 7.26% gain.

The Dow has galloped ahead 1933 points in the past two months, 8.02%, topping both index rivals and closed above 26,000 on Monday for the first time since February 1. Overall, investors are piling into stocks, unconvinced that the Fed's now-quarterly interest rate hikes will slow down US production in major industries. Income creation has been a duopoly since the Trump tax cuts became effective after the start of the year and stocks shook off the shocks of February and March.

With the Dow posting gains in six of the last eight sessions, the industrials have added nearly 900 points since August 16. With a three-day holiday dead ahead, the positive vibe may extend through Friday.

There is no other way around it. This rally is real, and has legs. The next FOMC meeting and widely anticipated 25 basis point rate hike is still a month off, on September 25-26.

Along with the NASDAQ and S&P closing at record highs on Monday, the Dow is a mere 600 points from its previous high from January 26 of 26,616.71.

Summertime... and the profits are easy.

Dow Jones Industrial Average August Scorecard:

Date	Close	Gain/Loss	Cum. G/L
8/1/18	25,333.82	-81.37	-81.37
8/2/18	25,326.16	-7.66	-89.03
8/3/18	25,462.58	+136.42	+55.05
8/6/18	25,502.18	+39.60	+94.65
8/7/18	25,628.91	+126.73	+221.38
8/8/18	25,583.75	-45.16	+176.22
8/9/18	25,509.23	-74.52	+101.70
8/10/18	25,313.14	-196.09	-94.39
8/13/18	25,187.70	-125.44	-219.83
8/14/18	25,299.92	+112.22	-107.61
8/15/18	25,162.41	-137.51	-245.12
8/16/18	25,558.73	+396.32	+151.20
8/17/18	25,669.32	+110.59	+261.79
8/20/18	25,758.69	+89.37	+351.16
8/21/18	25,822.29	+63.60	+414.76
8/22/18	25,733.60	-88.69	+326.07
8/23/18	25,656.98	-76.62	+249.45
8/24/18	25,790.35	+133.37	+382.82
8/27/18	26,049.64	+259.29	+642.11

At the Close, Monday, August 27, 2018:
Dow Jones Industrial Average: 26,049.64, +259.29 (+1.01%)
NASDAQ: 8,017.90, +71.92 (+0.91%)
S&P 500: 2,896.74, +22.05 (+0.77%)
NYSE Composite: 13,102.03, +102.59 (+0.79%)

Despite Deep State and Media Trump Hatred, US Economy Continues Expansion

Stocks made steady advances through the week and were especially profitable on Friday, as the NASDAQ and S&P 500 reached all-time closing highs.

The week also marked an historic moment on Wednesday, when the current S&P 500 became the longest bull market in US history, though the celebration was largely muted and overshadowed by fake news concerning President Trump.

While Washington and the mainstream media remains focused on unseating a duly-elected president, Wall Street is making hay while the sun shines, living large in the light under Trump's easy fiscal and tough trade policies which have put more money in the pockets of American workers, upset the global status quo, and spurred a delightful rally since he won the presidency in November, 2016.

Many deep state politicians and the loathsome mainstream media seem to be on another planet when it comes to politics and the economy. While middle America is flourishing after years of mismanagement under presidents Bush and Obama, they look the other way when it comes to Trump, refusing to acknowledge his various successes, instead plowing ahead with false narratives that run the gamut from colluding with Russia during the 2016 campaign to steamy affairs with a porn star and a Playboy playmate.

Politicians on the left and even many so-called RHINO Republicans seem content to spend most of their time fomenting fear and hatred. At the same time, Wall Street remains unimpressed and without concern over the political hijinks and wasted efforts to impeach or impair the Trump presidency.

It's a sad state of affairs when the dominant media can only produce stories that are shakily superficial and barely believable. If anything unsettles markets, it would likely come from the swamp creatures in DC and the media, though as of yet, investors and the general US population aren't buying it.

Approaching the final week of unofficial summer, markets are robust but heavily overvalued. Profits since the last recession and the 2008-09 financial crisis have been all too easy. Market veterans know just how quickly good times can turn bad, although since the downturn in February and March there's been little thought or discussion about booking profits, moving to cash positions, or consolidating gains in any concerted fashion.

Bonds have been stable, precious metals have gone into a long, deep reversion, and inflation is not overwhelming. Outside of high valuations and the constant attacks on President Trump, the US economy appears as healthy as it has been in the past 20 years.

Dow Jones Industrial Average August Scorecard:

Date	Close	Gain/Loss	Cum. G/L
8/1/18	25,333.82	-81.37	-81.37
8/2/18	25,326.16	-7.66	-89.03
8/3/18	25,462.58	+136.42	+55.05
8/6/18	25,502.18	+39.60	+94.65
8/7/18	25,628.91	+126.73	+221.38
8/8/18	25,583.75	-45.16	+176.22
8/9/18	25,509.23	-74.52	+101.70
8/10/18	25,313.14	-196.09	-94.39
8/13/18	25,187.70	-125.44	-219.83
8/14/18	25,299.92	+112.22	-107.61
8/15/18	25,162.41	-137.51	-245.12
8/16/18	25,558.73	+396.32	+151.20
8/17/18	25,669.32	+110.59	+261.79
8/20/18	25,758.69	+89.37	+351.16
8/21/18	25,822.29	+63.60	+414.76
8/22/18	25,733.60	-88.69	+326.07
8/23/18	25,656.98	-76.62	+249.45
8/24/18	25,790.35	+133.37	+382.82

At the Close, Friday, August 24, 2018:
Dow Jones Industrial Average: 25,790.35, +133.37 (+0.52%)
NASDAQ: 7,945.98, +67.52 (+0.86%)
S&P 500: 2,874.69, +17.71 (+0.62%)
NYSE Composite: 12,999.44, +65.98 (+0.51%)

For the Week:
DOW: +121.03 (+0.47%)
NASDAQ: +125.65 (+1.66%)
S&P 500: +24.56 (+0.86%)
NYSE Composite: +91.18 (+0.71%)

Stocks Take A Break, All Major Indices In Red

The S&P just set a record as the longest bull market in US history, the Dow has been on a tear and the Dow Transportation Index just set a new all-time high two days ago, so, it's perfectly natural for stocks to take a breather here.

It is, after all, the 23rd of August, the proverbial dog days of summer. Plenty of people needed to take a break, look things over, calm down, have another mai tai by the pool and relax. Markets have been running at breakneck speed thanks to the Trump hate, tariffs, emerging market slide, Turkey's currency crisis, Italy's break away government, et. al.

Thursday's trading differed from previous session in that all four of the major indices finished lower. Lately, the pattern has been for split markets, with the Dow and NASDAQ moving in opposite directions. Though the losses were not significant, the fact that the direction was similar may signal something more ominous.

Of course, the way markets have been consistently, over time, moving to higher ground, going short here would seem to be a rather risky proposition.

Dow Jones Industrial Average August Scorecard:

Date	Close	Gain/Loss	Cum. G/L
8/1/18	25,333.82	-81.37	-81.37
8/2/18	25,326.16	-7.66	-89.03
8/3/18	25,462.58	+136.42	+55.05
8/6/18	25,502.18	+39.60	+94.65
8/7/18	25,628.91	+126.73	+221.38
8/8/18	25,583.75	-45.16	+176.22
8/9/18	25,509.23	-74.52	+101.70
8/10/18	25,313.14	-196.09	-94.39
8/13/18	25,187.70	-125.44	-219.83
8/14/18	25,299.92	+112.22	-107.61
8/15/18	25,162.41	-137.51	-245.12
8/16/18	25,558.73	+396.32	+151.20
8/17/18	25,669.32	+110.59	+261.79
8/20/18	25,758.69	+89.37	+351.16
8/21/18	25,822.29	+63.60	+414.76
8/22/18	25,733.60	-88.69	+326.07
8/22/18	25,656.98	-76.62	+249.45

At the Close, Thursday, August 23, 2018:
Dow Jones Industrial Average: 25,656.98, -76.62 (-0.30%)
NASDAQ: 7,878.46, -10.64 (-0.13%)
S&P 500: 2,856.98, -4.84 (-0.17%)
NYSE Composite: 12,933.46, -57.05 (-0.44%)

Of The Long Bull Run And The Short Bear

Today, the S&P 500 set a new mark as the longest bull run in stock market history, surpassing the bull market record that ran from October 1990 to March 2000.

On Wednesday, the bull market that began on April 8, 2009, reached 3,453 days. The nearly 9 1/2 year run without a decline of 20% has seen the S&P rise from its low of 815.55 on April 7, 2009, to yesterday's closing high of 2,862.96, a gain of 2047.41, an average annual return of 26.4%. It's been quite a decade for Wall Street after the financial crisis had put the world on edge.

Unlike anything seen before, excepting possibly the expansion during the 1990s dotcom boom, investors have been showered with profits from virtually all sectors. There is no denying that the bull market of the 20-teens will go down in economic history as one of the more bizarre experiences ever, fueled by unlimited free-spending by central banks in global coordination, slashing interest rates at times, in some countries, to negative yields.

Adding to the hyper activity in the markets were stock buybacks by nearly every major corporation, financed by ultra-low interest rates. Buybacks reduced the number of shares outstanding, thus boosting earnings-per-share calculations beyond normal ranges.

While many still argue that this bull market was mostly smoke and mirrors, enhanced by the Federal Reserve and of benefit to only the richest one percent of the population, anybody who invested during this period made money. That's an undeniable fact that serves to silence even the grizzliest of bears.

Shortest Bear Market?

Adherents to Dow Theory (Money Daily being of that disposition) saw the end of the bull market earlier this year, when the Dow dropped precipitously from its January 26 all-time high close of 26,616.71 to 23,533.20 on March 23. The primary trend change (bull to bear) was confirmed when the Transportation Index closed on 10,119.36 on April 9. Since then, the Dow has come back, though it has not surpassed its previous high, which would signal another primary trend change from bear to bull. However, yesterday, August 21, the Transports set a new record closing high, finishing the session at 11,436.36 and well beyond its previous record close of 11,373.38, reached on January 12, 2018.

While the Transports have been leading (without much notice) the charge to new highs, it will take another spurt higher of nearly 900 by the Dow Industrials to surpass its own all-time high. If that scenario develops, the Dow will confirm the trend change that the Transportation Index has suggested. According to Dow Theory, the two have to react in tandem, confirming the primary trend direction.

The Dow demands close scrutiny in the weeks and possibly months ahead, because, despite the larger universe of pundits and analysts celebrating the longest bull run ever, until the Dow Jones Industrial Average closes above 26,616.71, theoretically, this is still a bear market and the recent activity since late March of this year has been nothing but speculation and noise.

For all the hoopla over the bull market record, today's action was noticeably subdued. Of the four major indices, only the NASDAQ returned a winner, as investors waded back into the tech-soaked speculative morass.

Dow Jones Industrial Average August Scorecard:

Date	Close	Gain/Loss	Cum. G/L
8/1/18	25,333.82	-81.37	-81.37
8/2/18	25,326.16	-7.66	-89.03
8/3/18	25,462.58	+136.42	+55.05
8/6/18	25,502.18	+39.60	+94.65
8/7/18	25,628.91	+126.73	+221.38
8/8/18	25,583.75	-45.16	+176.22
8/9/18	25,509.23	-74.52	+101.70
8/10/18	25,313.14	-196.09	-94.39
8/13/18	25,187.70	-125.44	-219.83
8/14/18	25,299.92	+112.22	-107.61
8/15/18	25,162.41	-137.51	-245.12
8/16/18	25,558.73	+396.32	+151.20
8/17/18	25,669.32	+110.59	+261.79
8/20/18	25,758.69	+89.37	+351.16
8/21/18	25,822.29	+63.60	+414.76
8/22/18	25,733.60	-88.69	+326.07

At the Close, Wednesday, August 22, 2018:
Dow Jones Industrial Average: 25,733.60, -88.69 (-0.34%)
NASDAQ: 7,889.10, +29.92 (+0.38%)
S&P 500: 2,861.82, -1.14 (-0.04%)
NYSE Composite: 12,992.05, -4.71 (-0.04%)

Stocks Continue Rally, S&P 500 Reaches New All-Time High

There was cause for celebration on Wall Street and around America on Tuesday as the S&P 500 reached a new all-time record close, gaining 5.91 to finish the day at 2,862.96, four-and-a-half points beyond the previous high set just two weeks ago, on August 7th.

While the S&P and NASDAQ have surged to new records after the February correction, the Dow is still 800 points shy of its all-time mark, though, with the economy booming, there's little to no apprehension among investors. The widespread belief is that the Dow will push forward, despite the warnings from Dow Theorists who insist a bear market on the Dow Jones Industrial Average had commenced earlier in the year. Clearly, recent data disputes the veracity of any argument made by the venerable Dow Theory.

On Wednesday, stock pickers will be in a celebratory mood once again, marking the longest bull run in US market history, surpassing the dotcom run from 1990 to 2000. According to this LA Times story there is some disagreement, but there are few who argue that this bull run has been outstanding, starting on April 9, 2009, without as much as a 15% decline throughout the duration of the run.

Tomorrow it is, then. Another record.

Dow Jones Industrial Average August Scorecard:

Date	Close	Gain/Loss	Cum. G/L
8/1/18	25,333.82	-81.37	-81.37
8/2/18	25,326.16	-7.66	-89.03
8/3/18	25,462.58	+136.42	+55.05
8/6/18	25,502.18	+39.60	+94.65
8/7/18	25,628.91	+126.73	+221.38
8/8/18	25,583.75	-45.16	+176.22
8/9/18	25,509.23	-74.52	+101.70
8/10/18	25,313.14	-196.09	-94.39
8/13/18	25,187.70	-125.44	-219.83
8/14/18	25,299.92	+112.22	-107.61
8/15/18	25,162.41	-137.51	-245.12
8/16/18	25,558.73	+396.32	+151.20
8/17/18	25,669.32	+110.59	+261.79
8/20/18	25,758.69	+89.37	+351.16
8/21/18	25,822.29	+63.60	+414.76

At the Close, Tuesday, August 21, 2018:
Dow Jones Industrial Average: 25,822.29, +63.60 (+0.25%)
NASDAQ: 7,859.17, +38.17 (+0.49%)
S&P 500: 2,862.96, +5.91 (+0.21%)
NYSE Composite: 12,996.76, +31.66 (+0.24%)