13 record highs for the Dow since the election!
We finished the day yesterday at 19,614 and that's up 1,731 (9.67%) from 17,883 before Donald Trump saved America just a month ago. 19,671 will be the official 10% move and we did flatline at 18,777 (the 5% line) on the way up but never a pullback. Per our fabulous 5% Rule™, we expect a 20% retrace of the 10% run so a 2% pullback from 19,671 would be 357 points back to 19,313 but we didn't even pause there on the way up, which is a possible indicator that we're in the midst of a 20% run – not at the top of a 10% run.
This is not, of course, unprecedented. When Obama was elected, the Dow was at 9,712 in November of 2009 and we added 1,000 points by Jan 14th, 2010 and hit 11,200 by April (up 1,488 or 15%) before having a significan correction and believe me, Republican voters were totally baffled by the markets reaction to that rally as well. Of course the Dow went on, in the Obama adminstration, to hit 13,600 in Sept for a total gain of 3,888 points or 40% but, at this rate, Trump should be able to blow that gain away before his first 100 days are up.
Because, after all, what's the difference how much we pay for stocks as long as there is someone else willing to pay more for them tomorrow. That's called "The Greater Fool Theory" and it works fantastically until you run out of fools but Trump got 60M votes – that is a really great number of fools we have to work with!
Trump just picked Andrew Puzder, CEO of CKE Restaurants, which is Hardees and Carl's Junior, who went private as Apollo bought them in 2010. Aside from being a strong opponent to raising the minimum wage and running ads like this, when speaking to Business Insider earlier this year, Mr. Puzder said that increased automation could be a welcome development because machines were “always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall or an age, sex or race discrimination case.”