Hello MarketClub members everywhere. By saying the words "Phenomenal tax plan" on Thursday, President Trump jump-started the "Trump Trade" as markets resumed their assault on record highs. President Trump also said in a meeting with the airlines on Thursday that "lowering the overall tax burden on American business is big league... that's coming along very well," adding that an announcement would come over the next two or three weeks. Stocks have climbed to record highs following these remarks.
But that begs the question, who was really trading yesterday? With the massive snowstorm in the northeast the trading volume was lower than average and it seems that the trading computers were the ones pushing the market higher. Scary to think about right?
As part of my daily routine, I use Smart Scan to look for stocks hitting new 52-week highs. I was shocked today when I saw McDonald's on the list. I can honestly say that McDonald's hadn't crossed my mind as of late, other than when the talking heads on TV talk about how poorly the company is performing here in the United States. And yet there it was, making a new 52-week high of 101.44 yesterday. Not only that, but it's closing in on the all-time high of 103.78 on 5/14/14.
It just so happens that I took my youngest son out to lunch yesterday and of course he wanted to go to McDonald's. So we jumped in the truck and headed over to the brand new one that they built in my town. Yes, I said new one. There are now two in this little town, the established one that's been here forever and the new one about 3 miles north of the old and on the other side of town. I remember asking myself, will the new one be busy? Will it take away to much business from the old one? I guess time will tell.
We pull up to the new one, and I notice that they still have a "Now Hiring" sign out front, and I think, "Oh boy, this isn't going to go well." As I walk in, I'm hit with the newness and completely different look and feel of this McDonald's. It's very futuristic and almost characterless honestly. I also notice that there is a line of cars around the building and 5-6 people waiting on food inside with looks of disdain on their faces. As I turn to get in line, I notice that they only have one person working the counter with a line of people waiting. As people start to complain about the wait I make an executive decision, "kid, were going to the other one" and we leave. Continue reading "Don't Look Now, But McDonald's Hit A New 52 Week High"→
I've found another stock for you to look at today, just like Celgene. You need to watch today's video to find out which stock I'm talking about.
But first, it has been quite a week to say the least. A nuclear deal signing with Iran, the Greek situation finally resolved with the German Parliament today voting in agreement to bail out Greece. Just wait, in a few years time I'm sure Greece will come up again as a problem.
The markets are reacting very positively on the upside to all this good news.
The next big worry traders will begin focusing on is a potential rate hike later this year. Whether that comes in September or later is yet to be decided. Who knows, it may not even happen this year.
Investment opportunities can be found in many places – the new 52-week high list is one of my favorites. These stocks have built-in momentum already on their sides along with at least one major positive catalyst that propelled them beyond that resistance line.
While it might seem strange to start buying a stock at such a high price, history suggests that stocks breaking above a 52-week high generally continue to climb upwards. It's arguably the easiest trend to spot and can be a lucrative investing strategy when the momentum is carried along by strong fundamental catalysts.
The big news today is the death of King Abdullah of Saudi Arabia. The king was hospitalized with pneumonia-like symptoms in late December and died early Friday at the age of 90. It was understood that Crown Prince Salman, King Abdullah's half brother, was the hand-picked successor and has moved quickly to established himself as the new king.
The death of King Abdullah is a game changer in the Middle East and Saudi Arabia, which holds 46% of the world's oil reserves. Saudi Arabia is a major ally of the US, how that changes now is anyone's guess.