The Closing Look

The Dow hit a fresh record high on Thursday helped by a large rally in the financials, industrials, materials and transports. The Nasdaq and Nasdaq 100 spent the session in the red as several big growth stocks remain under pressure (AAPL, AMZN, FB, FLT, BABA, just to name a few). Almost overnight, the areas of the market that were lagging (Dow and S&P 500) are now leading and the areas that were leading for the past few months are now lagging (Nasdaq and Nasdaq 100) as the market prices in a Trump victory.

Gary’s Thoughts: While the “Trump stock” rally continued today, we are letting you know something is up. For sure, banks (bye bye Dodd Frank) insurance, industrials and a few other areas have had 2 day melt ups…at the same time…bonds,junk bonds,emerging markets,real estate, utilities, food,beverages,tobacco,household products,housing,gold,silver and most importantly, nasdaq, nasdaq 100, semis and major league growth are breaking down and breaking down big. So…something is up. Maybe it is WHAT IS BAD IS VERY BAD AND WHAT IS GOOD IS VERY GOOD is at play.