The Trump Rally continues lifting the Dow and the S&P 500 higher; it was driven by news on Wednesday that wasn’t news to readers of my commentaries or to viewers of my show: ‘Making Money with Charles Payne.’  I had no doubt that consumer confidence would surge and I think that trend will continue for some time.  

We won’t have to wait long to get an update on confidence and other underpinnings of the economy (next week) as it is the most consequential for the rest of the year.  We’ll get the health of the economy from the Gross Domestic Product (GDP) and more housing data, along with construction and manufacturing.

The biggie, of course, is the employment report.  The last report wasn’t exactly a barnburner:

• Nonfarm Payrolls: 161,000
• Unemployment Rate:  Level 4.9 %
• Participation Rate: Level 62.8 %

The calendar should bring more volatility to the market, but it would take a major series of disappointments to derail the rally.

The market is feeding off a pulse on Main Street, but it’s not just consumers as the durable goods report showed an increase in business investment spending.  I am looking for the gears of American businesses to kick in strongly. The S&P Industrials have broken out to a new high, and it has room to move higher.

The group represents the building blocks of our nation, which is poised to grow well beyond a wall or to patch up our shoddy roads.

You must have exposure to this group in your portfolio. Most of our current ideas are well beyond the buy limit, of which I will have a new position on Monday morning.

In addition to industrials, investors must have exposure to materials, energy, and consumer discretionary names.