We had another of those small degree time windows—161 days up from the early November low, which came to be known as the Trump rally. With time windows, we have issues as one never knows if it will create a low or a high. Most of the time it’s a high, but upon occasion, it will top early and create a low.
Imagine oversleeping on Friday morning and waking up to find the Nasdaq down 100 and the Dow up nearly 50. You probably would’ve thought you were dreaming. Perhaps you’d roll over and go back to sleep. In this new era of strange trading days, Friday had to rank right up there with the strangest of them.
U.S. stocks opened higher on Friday, led by technology stocks, as a sense of calm prevailed over the financial market in a week that was dominated by political uncertainty surrounding Donald Trump's presidency.
The S&P 500 and the Nasdaq opened at record highs on Tuesday amid rising appetite for riskier assets following Emmanuel Macron's victory in the French presidential election and a strong U.S. corporate earnings season.
While I've never once gotten my shoes shined, I do have my own version of the proverbial shoeshine boy who signals the top: my father-in-law. He regularly provides a perfect contrary indicator: When he says it's time to buy something (like U.S. stocks in 2008 or the U.S. dollar at the start of this year), it's inevitably time to sell, and vice-versa.
World stocks hit a record high on Wednesday after strong earnings and the prospect of tax cuts for corporate America boosted U.S. shares and the euro held on to recent gains as political concerns in France ebbed.