December 19, 2017
Posted 9:30 AM ET - Yesterday the market made a new high. The House will vote on the tax bill today and the Senate will vote tomorrow. It should be on Trump's desk this week and the market is rejoicing. Seasonal strength, strong economic releases and earnings are supporting the move. I still believe prices will top out around SPY $270 this year. The continuing resolution (budget) needs to be extended into January. The deadline is Friday and Democrats could put up a fuss. They want Republicans to be fully aware that a major battle lies ahead. Swing traders should be sidelined. Wait for a dip. Stocks have been grinding higher for weeks and those gains can be given back very quickly. I expect to see some consolidation near the all-time high in January. Debt ceiling negotiations will keep a lid on the rally. Any dip will be a buying opportunity. Day traders should take the rest of the week off. Intraday ranges have been very compressed. The S&P 500 has rallied 20% this year and I expect to see little profit-taking early in January. . .
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