Transcript
Hello, everybody, welcome to Wednesday. This is one of the really exciting days to be doing these videos today, a lot of information happening, an unbelievable update today should wear be wearing two green shirts, actually that the S&P 500 was up 2.2%, which is, you know, on the high moderate side, but really unbelievable. The, you know, innovative technology up 5.2, housing construction up 5.1, advanced health care, software, Microsoft, cybersecurity all up over 4% for the day. Apple is up, it was incredible. We saw monstrous movements upward.
And I can give you you know, at least some of my opinion as to why this is happening. If you watch really closely during the election, and you looked at what was happening in the futures market, the market really started moving, in my opinion, based on what was happening in the Senate, the you know, White House situation had not been resolved. And obviously, it’s still not resolved. But the Senate’s staying Republican, it creates a whole bunch of different things. When you have a split Congress, you know, you’re not going to get through some of the regulations that they were talking about maybe doing against the technology companies. And of course, the technology companies went crazy today. Because they you know, that was lessened, that possibility was lessened. You have healthcare, you know, moving forward today, it was just, you know, that split had created a scenario where there’s possibly no increase in capital gains taxation, no increase in corporate taxation, and whether we think that’s a good or a bad thing. You know, just personally, the market likes lower taxes, because that means more earnings, more profits, which means that the companies can buy back more of their stock. And the price itself is usually based on the earnings over a long period of time.
So really, really powerful pieces. And, and I’ll show you what’s happening today, because really interesting, what has happened in terms of the overall scenario, so let me share my screen real quickly. And this is, again, you know, the S&P 500, as represented by Vanguard, S&P 500 Index. This is the volume for that index. And today, we jumped up, huge move upward altogether. And we’ve moved past this, you know, resistance here, we couldn’t get through it before. So again, this is the volume for this particular index on, you know, the last year. And here’s the big piece, and the red line being the biggest for the year, very, very powerful support. But now we’ve moved up, and here’s the key, there’s no resistance really, of any substance above. So if the market wants to keep going up and up, it can. Now we’ve got to probably have some volatility as we figure out who the President is going to be, because that still does have some impact. And, but we have so much support now at here at this level, and certainly here. So it’d be very hard, it would be very, very dramatic for it to fall through that level.
One of the other issues that’s come up quite often is just you know, what happens now with clean energy. And so, you know, obviously, one of the thoughts was that clean energy would be one of the key things that if we had a democratic sweep, they were talking about a $2 trillion clean energy package. And so we did see clean energy come down some today, but not much just a percent or 2%. And what I’m showing here is one of the Clean Energy indexes, this is weekly data for the last nine months. And you can see it’s done quite well. And this blue line shows the relative strength versus the red line, which would be the S&P 500. So when the blue line’s above the red line, it means this particular index is doing better than the market, the S&P 500 in this case, and you can see that there has been a decrease here, but it’s still really, really above. And of course, clean energy is a global story. And these are, this is actually a global index. It’s not just the US, it’s not just our piece, it is important. But Europe and China and whatnot are really, you know, biting into the Clean Energy concept as a whole.
So I suspect things will work out, okay, there. The theme for clean energy is still very, very strong, even without a democratic sweep. But we do have to watch that trend, right. So we’ll see what happens there. But all together. This was an unbelievable day, one of the most amazing days I’ve seen, you know, certainly this year, lots of good information, lots of direction, and we were really, really well placed for what happened today. So I’m very excited about that. So I look forward to talking to you tomorrow. That’s it. Let’s see what happens. This has been interesting. Thank you.