#1 Dow posts biggest weekly rally since 2016 By Matthew Rocco Published February 16, 2018 by ThirstyMan 17.02.2018 10:05


By Matthew Rocco Published February 16, 2018

The Dow extended its winning streak Friday, though stocks ended the day mixed after authorities revealed indictments of Russians who allegedly interfered in U.S. elections.

The Dow Jones Industrial Average gained about 19.01 points, or 0.08%, to 25,219.38. The S&P 500 added 1.02 points, or 0.04%, to 2,732.22. The Nasdaq Composite fell 16.96 points, or 0.23%, to 7,239.47.

The S&P 500 and Dow industrials have mounted a six-day rally in the wake of last week’s broad sell-off, bringing all three major indexes back into positive territory on the year. The Dow clinched its best weekly percentage gain since November 2016, while the S&P 500 had its best week in more than five years. Concerns over rising inflation were subdued this week, even as the Labor Department reported a stronger increase in consumer prices than expected.

Wall Street briefly erased its gains Friday after special counsel Robert Mueller indicted 13 Russian nationals on charges of committing “information warfare” against the U.S. in advance of the 2016 election. The stock market bounced back when Deputy Attorney General Rod Rosenstein said the indictments included no allegations that any American knowingly colluded with Russia. He added that the indictments do not allege that the information campaign impacted the election’s outcome.

The explanations for the stock market falling, rival the theories of global warming for irrelevance. The fall of the Dow provided such a convenient opportunity for the pundits, especially the radical Leftists who desperately want to see the sky falling all around Donald Trump. Did anyone ever hear of profit taking? Remember that explanation???? Profit never gets realized until the stock gets sold. Sell High!!! And then Buy Low!!! This is what makes a trader wealthy!!!

But the analysts seem compelled to offer complex explanations and depending upon their political bias, their explanation always serves to prove their own particular pet bias.

Oh well, don't get too wrapped up in the explanations, as if they must make sense. People have short memories and it doesn't take long for them to forget how this all works.

I wasn't surprised to see the sawtooth pattern of selling and buying emerge. It was an opportunity for some traders to do their thing. Sell high and then get back in.

The "news" of why it was happening was largely superfluous. The pro traders went home wealthier, that's all. TM

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