Another Solid Year for Stocks! | Week in Review… 12/29/2017


2017 will go down in history as another solid year for Wall Street. The major averages all surged to fresh record highs as volatility remained exceptionally low.  There were several bullish macro catalysts for the strong rally on Wall Street, most notably: Strong GDP, Corporate Earnings, and Low-Interest Rates From Global Central Banks.  The strong year ended with a big tax cut.

The market remains very strong as investors continue to show up and buy every dip. The one BIG concern as we head into 2018 is that a lot of time has passed since we have seen a meaningful pullback or a correction of any sort. The last meaningful sell-off was in Jan-Feb 2016.  Since then stocks have soared.  Additionally, the last bear market was in 2008-2009 which makes this the second-longest bull market in history. Bottom line, the market remains exceptionally strong until we see any selling on Wall Street. 



Mon-Wed Action:

Stocks were closed on Monday for Christmas. On Tuesday, the market was quiet after shares of Apple Inc (AAPL) gapped down on a report that the new iPhone X sales are sub par. The bulls showed up and defended the 50 day moving average line for Apple which is a healthy sign.

Separately, the Wall Street Journal reported that U.S. retailers had a good Holiday Shopping season which made up for an otherwise lousy year. That news helped a slew of retail stocks to rally. Remember, retail stocks have been under pressure for the past few years as shares of Amazon (AMZN) continue to soar to new record highs.

On Wednesday, stocks closed slightly higher as utilities and real estate stocks rallied. Trading volume was very light and was one of the quietest days of the year. Big money is moving back into the beaten down commodity sector as valuations remain stretched to the downside. In a bullish note, Copper prices soared to the highest level since 2014 as investors look forward to the infrastructure plan in 2018.

Thur & Fri Action:

Another solid year for stocksStocks were quiet on Thursday as money rotated back into tech stocks after a few day breather. In another illustration of strength, on a monthly basis, the major averages are setting more records. The Dow Jones Industrial Average is on pace for its first nine-month winning streak since 1959 and the S&P is on track for its first nine-month winning streak since 1983. Stocks fell on Friday which was the last trading day of the year.


Market Outlook: Bulls Are Strong

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape.


Check out some of our recent blog posts:



Here are more articles you may like

Claim Your Free Guide Today

Give us your email and we will give you the tools to change your life. 


Learn about Early Entry Points & much more...

© ChartYourTrade | Contact us:

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service