The Dow Jones Industrial Average (DOW) hit new highs on Thursday and Friday, breaking the 20,200 mark for the first time in its history.
The Dow Jones Industrial Average daily closing stock average has risen now more than 10% since the election on November 8th. Including November 9th through today, there have been 64 trading days. A third of these days have reached all time highs (21 times) for the Dow. Another 11 days have reached the 2nd highest close ever and another 9 days have reached the 3rd highest close ever. Half of the trading days since Trump won the election have resulted in new highs for the Dow or 2nd highest days ever and two thirds of these days have resulted in the closing total to be at least the highest, 2nd highest or 3rd highest closing day in history!
This rally is historical for other reasons as well. Per our research this is only the 2nd time since 1937 when the Inauguration date was set at January 20th that the stock market hit two new closing highs in the four trading days after the inauguration. This occurred in January of 1965, shortly after Lyndon Johnson was sworn in as President and again right after the inauguration.
Also, another record during the Trump Rally is that the stock market moved between 1000 point markers (between 19,000 and 20,000) in only 42 trading days. The only time it moved faster between significant markers was in 1999 when it took 24 days to reach 11,000. This time the market hit 19,000 on November 22nd shortly after Trump won the election, and then the market broke 20,000 on Wednesday this week. These new highs occurred only 42 trading days apart.
As we pointed out on December 21st shortly after Trump was elected, never in its history had the DOW reached the number of closing bell highs after an election. There were only 8 times in the history of the Dow where the Dow set new closing highs for 17 days or more in a 29 day period. The last time this occurred was nearly 20 years ago in 1998. (The rally in 1928 started in October before the election.)
The prior daily closing high before the November 8th election was on August 15th, 2016. This is why the ‘Trump Rally’ is such an anomaly and totally due to President Trump and his winning policies.