Don’t look now, but a key millennial hashtag is playing a role in moving the market these days:  

#FOMO (fear of missing out)

Noun: FOMO

Anxiety over the possibility of missing an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website.

In this particular case, that anxiety is coming from investors that missed the stock market rally during the Obama years, and are now missing the Trump Locomotive. Sadly, millions of folks that voted for the President-elect are still hesitant about owning great American companies. However, the higher the market goes, the more folks realize it would be a shame to not participate in an economic Renaissance that they actually voted for.

The reality is the nation is eager for the kind of cultural renaissance that began in Italy and ushered in all of Europe from the 14^th to the 17^th century.  If this is the case for the United States, it means reverting to a can-do nation that focuses on the cycle of individual achievement, which creates individual opportunities; ultimately, to pull oneself up by one’s bootstraps to a better life.

Back in 2008, President-elect Obama said that some people didn’t have bootstraps to tug on; suggesting self-reliance was not only unrealistic but even insulting.

Now, the nation is ready to get back to work, and people want to earn their piece of the action. The same mentality doesn’t always apply to investing, which is seen as something for the elites or a byproduct of a rigged system. I can tell you that there is a lot of rigging and the playing field isn’t level, but when it’s all said and done, the shares of great businesses will move higher while poor businesses move lower.

It’s a shame Wall Street shenanigans have spooked so many people out of the market, or it continues to keep them at bay.

This is a great rally that will have some down days. If you look back a year or two from now (without having benefited), there will be no one to blame but yourself. After all, I think you voted to make your portfolio great again.

Buy Signal for the Big Boys & Girls

The train is leaving the station and picking up steam as witnessed in yesterday’s parabolic action.

It was all triggered by the Dow Jones Transportation Average reaching a new high for the first time since November 28, 2014.  Two days after the election, I said the move in this index would add credibility that gets big money to believe; that’s why 408 stocks on the New York Stock Exchange and 437 on the NASDAQ hit new 52-week highs on Wednesday.

Lots of old school/smart money believes that Charles Dow’s theory of transportation corroborating a move in industrials as the ultimate sign of economic growth and buy signals for stocks.

In this case, transportation names aren’t just a harbinger for the economy, but a possible deal to fix the North American Free Trade Agreement (NAFTA) quickly.  I continue to believe Mexico and Canada will fold like a house of cards, with early concessions that coincide with the inauguration.

Speaking of the administration, Linda McMahon will head the Small Business Administration (SBA) and Scott Pruitt will head the Environmental Protection Agency (EPA); both names are phenomenal picks.  On that note, get exposure in coal/steel and in tech names; Seagate Technology (STX) is on the cusp of a major breakout.

Today’s Session

The big news this morning comes from Europe where the ECB announced what some are calling a mini-tapper.   The duration of quantitative easing (QE) has increased, but the monthly purchases are being lowered as Mario Draghi sees signs the global economy is improving.

• Total Purchases $2.4 trillion
• Monthly Purchases €60.0 billion down from €80.0 billion
• Duration December 2017 from prior March 2017

The news initially pressured the US dollar, which would have been a welcomed development, but now the dollar is moving higher.  

Today’s Session

The big news this morning comes from Europe where the ECB announced what some are calling a mini-tapper.   The duration of quantitative easing (QE) has increased, but the monthly purchases are being lowered as Mario Draghi sees signs the global economy is improving.

• Total Purchases $2.4 trillion
• Monthly Purchases €60.0 billion down from €80.0 billion
• Duration December 2017 from prior March 2017

The news initially pressured the US dollar, which would have been a welcomed development, but now the dollar is moving higher.  

 

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