Stocks soared on Monday after Moderna said preliminary data showed its coronavirus vaccine is more than 94% effective. That helped shares of the biotech stock soar and it helped lift the major indices as well. This is the second big vaccine news and it bodes well for us moving closer and closer to the end of this entire Covid world we currently live in. The faster we go back to normal, the better life will be. Stocks were mostly lower on Tuesday as the market paused to digest the very strong rally we have seen in recent weeks. In corporate news, Tesla was added to the S&P 500 and Amazon is getting ready to disrupt the pharmacy business. In other news, retails were reported and shares of WalMart fell after the company reported earnings. Stocks fell on Wednesday as the number of cases continued to soar across the country. In fact, NYC announced it will close schools to help curb the spread. In other news, shares of Target rallied after the retailer reported earnings.
The bulls showed up and defended important support (September 2020’s low). Looking forward, as long as that level holds, the bulls remain in control. If all the major indices break below September’s low then odds favor lower prices will follow. Earlier this year, global governments, and global central banks, once again, stepped in with massive rate cuts and other “aid” packages to help “stimulate” both Main Street and Wall Street. That said, longer term, as long as March’s lows hold, the market will likely move sideways to higher. On the other hand, if March’s lows are breached, then look out below. As always, keep your losses small and never argue with the tape.
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