With the Dow closing above 28,000 for the first time, we have further confirmation that this rally may have further to go. Whenever a major index cracks a significant level, like the Dow just did, the psychological effect can help to push markets even higher. With the S&P 500 also hitting new highs, the trend is clearly upward despite the real economic and political risks. Psychology matters in the markets, as it affects how news is interpreted, and this is just one more even that is likely to make perceptions even more positive," said Brad McMillan, chief investment officer for Commonwealth Financial Network.Stocks have been hitting continuous records over the past weeks.White House Economic Adviser Larry Kudlow expressed optimism over a US-China trade deal on Friday, boosting investor sentiment. The countries announced they were close to a "phase one" deal mid-October but have yet to sign it. In the meantime, the market has been getting mixed signals from officials, sometimes buoying and sometimes hurting hopes that a deal will be struck.
APT Price at posting:
$32.91 Sentiment: Buy Disclosure: Held
