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  • ETF Tracker Newsletter For February 17, 2017

    ETF Tracker StatSheet

    Extending The Winning Streak

    [Chart courtesy of]

    1. Moving the Markets

    Despite the major indexes hovering in negative territory for most of the day, in this new normal market environment, they are not allowed to close two days in a row in the red. As a result, as if by magic, stocks were pushed up during the last hour to be sure the Dow was able to extend its record-setting streak to a seventh session while the S&P 500 added +1.5% for the week.

    The bears were on deck waiting for some downside follow through but, as we’ve seen numerous times over the past year, the late afternoon ramp destroyed any kind of hope for continued bearish sentiment. Again, the Trump euphoria remains in full swing fueled by promises of lower taxes along with massive infrastructure investments. Although it seems to me that enthusiasm has faded a bit over the past few trading days as White House sparring with MSM reached new lows.

    Be that as it may, at this time, bullish momentum is in full swing, despite occasional hiccups, and Wall Street sentiment points to more upside for equities. However, it all seems very one-sided and surreal, so we need to be aware that not all is well economically, especially when looking at the potential for higher interest rates, which can derail this rally in a hurry.

    The fact that stock prices are rallying does not mean the underlying fundamentals warrant reckless up moves. Case in point is Caterpillar, a company that has not reported a single monthly uptick in sales for 50 consecutive months, yet its stock price has soared 18% since the Trump victory. Take a look at the chart: