New All-Time price highs on increased volume in the major stock market indexes continue to reward investors as a result of renewed hope in an upcoming tax cut for corporations & individuals. Friday, being the end of a performance measurement quarter, showed the expected increase in demand for shares in all types of industries as many portfolio managers/investors scrambled to have their own year-to-date gains catch up and assertively invested capital that was sitting “on the sidelines”.
Monday, being the first business day of a new month, will likely see more of the same as “first day of the month inflows” (deposits for 401k, pension, & IRA $) pour into the market for millions of working Americans. The negative technical aspects we had identified earlier in Sept. have diminished greatly and our indicators have been positively “in-gear” for over a week. Barring anything hostile developing over this weekend that would scare investors, the market should continue to respond well. If so, by mid-week our Current Market Outlook may change to a “green” light. Just to be clear; the demand for equities near the end of a quarter in an up year, and on the first day of a new month, can drive prices up temporarily. The real test will be to see if the demand continues into and through next week. Stay tuned. Have a Triumphant day!