The "Santa Claus Rally" is a seasonal pattern wich occurs with a high probability in the last trading day before christmas and wich runs into the first 2 weeks of January
"A Santa Claus rally is a rise in stock prices in the month of December, generally seen over the final week of trading prior to the new year. The rally is generally attributed to anticipation of the January effect, an injection of additional funds into the market, and to additional trades which must, for accounting and tax reasons, be completed by the end of the year. Another reason for the rally may be fund managers "window dressing" their holdings with stocks that have performed well. The Santa Claus rally is also known as the "December Effect" and was first recorded by Yale Hirsch in his Stock Traders Almanac in 1972." en.wikipedia.org/wiki/Santa_Claus_rally
After the tax bill passed both Senate and Congress ATT and Comcast giving $1,000 bonuses to hundreds of thousands of workers. Raising wages increasing capital expenditures both are unexpected issues regarding to the widely anticipated US TAX reform:
US GDP is driven two third by private consumtion. Higher wages likely to increase US GDP and supportive for US Stockmarkets as well. The momentum for the S&P 500 Index should continue into January 2017. Short term target is 2.750 points. Medium target should be 3.000 points until any major correction should occour. The ongoing momentum had been confirmd also in the past trading days by suprisingly new all time highs for the Dow Jones Transportation Index (Dow Theory).
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SPX: New All Time High
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DJT: New ATH
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DJT: New All Time High
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S&P tops 2,700 for first time on tech gains, strong data
The benchmark S&P 500 index surged past the 2,700-mark for the first time on Wednesday and other major indexes hit record intraday highs as technology stocks climbed amid indications of robust economic growth in the U.S. and overseas.
The technology sector was boosted by a rise in shares of Oracle (NYSE:ORCL), IBM (NYSE:IBM) and chipmakers. The index - the best-performing S&P 500 sector in 2017 with a 37-percent jump - was up 1.08 percent.
"Tech sector got beaten up right toward the end of the year and is seeing a rebound. It stands to benefit the least from the tax plan, but large caps that have the largest overseas holdings will benefit from ability to repatriate money," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.
A report showed U.S. factory activity increased more than expected in December, in a further sign of strong economic momentum at the end of 2017. Meanwhile, manufacturing surveys pointed to a strong start for the European economy.
The manufacturing data came ahead of the scheduled release of the Federal Reserve's minutes of its December policy meeting. Investors are likely to scan the release for hints on rate tightening action in the coming months and the impact of the U.S. tax overhaul on the economy and inflation. The odds of an interest rate hike in March jumped to 61.9 percent from 56.3 percent after the data, according to CME Group's Fedwatch tool. investing.com/news/stock-market-news/stock-futures-rise-on-signs-of-strong-global-economic-growth-1056211
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FUNDAMENTAL DATA / MARKETS
Dow tops 25,000 on strong private hiring, global growth hopes
The Dow Jones Industrial Average broke above the 25,000 level for the first time on Thursday and other major indexes scaled new highs after strong U.S. private jobs data added to upbeat sentiment following indications of robust growth globally. The 30-member blue-chip index crossed five 1,000-point marks in 2017, driven partly by President Donald Trump's pro-growth agenda and solid corporate earnings. The momentum carried into 2018, with the benchmark S&P index closing above 2,700 for the first time on Wednesday and the Nasdaq settling above 7,000 a day earlier."Every 1,000-point increment in the Dow is becoming less of a percent move. It's just another milestone," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
"The point that people need to take is that the macro indicators are telling investors that world economies are doing really well."