Wednesday, January 18th, 2017

Why the current stock market is rallying ?

Despite high gas prices and other constraints on the economy stocks rallied hard towards fresh highs. The reason : News, good news.  the economy is still in shambles and delicately poised to lose steam if gas and oil prices keep hovering higher. But the stock market is rallying hard driven by the news. Click on the chart to enlarge.

Retail sales came in strongest in the last 5 months. That was at the opening bell. The stocks gapped up. Strong retail sales are indicative of consumer spending and consumer spending is seventy percent of GDP. Retail stocks are all moving higher in tandem.

Than came the Feds meeting which kept the rates unchanged which was expected, but it nevertheless boosted the morale.  The market really took off here and went straight up. SPX closed at 1395 and will go to 1400 here in a day or so because its not finished going up higher. There is a huge bullish candle on the charts right now and that will dominate several days of trading to come.

This move is baffling the bears who were hoping for a reversal and it never came.  They never trade with the trend, anyway, they always trade with what they feel, and what they feel is not what the charts tell us. if only for once they looked at the trend and the charts it will solve everything. But the mind is a hard thing to change, it refuses to admit empirical facts all the time.

I closed the SPX Calendar in a nick of time. It was not performing as expected. Low VIX was hurting the trade. Right now it  is in loss. It needs to be closed to avoid more losses as SPX will move higher and its only 2 days to expiration.

For now the trend is moving higher and we will be trading with it.


16 Responses to “Why the current stock market is rallying ?”
  1. Elijah says:

    It is a clear truth what you have written here! If everybody could write the same way like you guys than the internet would exist without lies and rumors! WARNING! Only the certified content here! Beware of fake!!

  2. Jocelyn says:

    This blog is very informative and usefull. Well Done!

  3. Amelia says:

    Let me start by saying nice post. I?m not sure if it has been talked about but when using Chrome I can never get the entire site to load without refreshing many times. Could just be my computer. Thanks anyway.

  4. Gavin says:

    Great post. Thanks for the sharing usefull information with us.

  5. Jocelyn says:

    I couldn?t even explain this information myself! I am delighted! Where you just take all the news? I am impressed! Thank you for all your work! I am grateful!!!

  6. Tyler says:

    Simply, admirable what you have done here. It is pleasing to look you express from the heart and your clarity on this significant content can be easily looked.

  7. Logan says:

    Thank you for your posts and for what you are doing here! Admirable work and much success in your business dealings! Please excuse my poor English as it is not my first tongue.

  8. Pretty good post. I have really enjoyed reading your blog posts.

  9. This blog was the first I?ve found on my search and I don?t need to look further. This is the exact information I need and I hope to read more about this soon! Thanks!

  10. Frugal Wiz says:

    This is the perfect blog for anyone who wants to know about this topic. You know so much its almost hard to argue with you.

  11. This blog post is very interesting. Would love to read a little more of this.


Check out what others are saying about this post...
  1. […] Why The Present Stock Market Is Rallying ? […]

  2. […] Why The Existing Stock Market Is Rallying ? « 100% Home Equity Loans […]

  3. […] Why The Recent Stock Market Will Be Rallying ? « Relatives Law Solicitors In Leeds – Recognising How Joint Family Law Will Help […]

  4. […] Why The Current Stock Market Will Be Rallying ? Categories: advice Notice: This work is licensed under a BY-NC-SA. Permalink: Why The Current Stock Market Will Be Rallying ? Simplified Ways Of Seeking Vehicle Insurance Coverage Quotes […]

  5. […] Why The Present Stock Market Is Rallying ? […]

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!