Toppy Tuesday – More Free Money Helps Us Re-Test the Highs

Here we are again!

Dow 30,404, S&P 3,735, Nasdaq 12,840, NYSE 14,405 and Russell 1,996.  Not only did the new $900,000,000,000 stimulus bill get signed but IMMEDIATELY after that, President Trump teamed up wiith the House Democrats to pass an additional $1,400 per citizen (of Georgia) handout to help us pay those Christmas Credit card bills and decide who to vote for in Thursday's Senate Run-Offs.

One of my big concerns is there would be selling ahead of the end of the year but clearly that hasn't happened, possibly because most people's gains are too short-term to have consequences for timing long-term capital gains, which may increase significantly next year under Biden (especially if the Democrats win the Senate).  That hasn't happened so there's no significant pressure to sell and the volume of trading is virtually none so it takes very little to manipulate the market higher and give 2020 a fantastic close – no matter what's actually wrong with the economy:

Date Open High Low Close* Adj Close** Volume
Dec 28, 2020 371.74 372.59 371.07 372.17 372.17 38,851,900


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