Week-In-Review: Stocks Race Higher, Helping The Nasdaq Hit A New Record High

Facebook
Twitter
LinkedIn

Do You Know The Most Under-Valued Stocks In The Market?
Our Members Do. Take a FREE TRIAL – CheapBargainStocks.com

Week-In-Review: Stocks Race Higher, Helping The Nasdaq Hit A New Record High

Stocks raced higher last week helping the Nasdaq Composite and Nasdaq 100 hit fresh record highs. The complexion changed a little as the beaten down areas of the market caught a nice bid and began to rally. Meanwhile, the leading areas of the market paused to digest their recent (and robust) rally. I call this action – The Great Mini Rotation and it is healthy on multiple fronts. All that does not change the fact that, for now, the market remains extremely overbought and due to pullback. The inability to pullback, even with these conditions, and all the negative headlines we read recently, clearly illustrates how strong the bulls are right now. 

Monday-Wednesday’s Action:

Stocks ended higher on Monday despite a violent weekend of riots across much of the country. Monday was the first trading day of the month and the fact that stocks shrugged off all the “negative” news out there is a very bullish sign. Additionally, it was bullish to see the S&P 500 close above its 200 DMA line. On Tuesday, the market traded mixed to mostly higher even as the country continued to deal with riots and the ongoing drama about reopening the economy. The good news is that the number of Covid19 cases has slowed in the US. Stocks rallied nicely on Wednesday as buyers continued to bid stocks higher. Much of the rally has been led in recent days by the beaten down stocks that were severely impacted by Covid19 shutdown. Elsewhere, the ADP payrolls report showed 2.6 million Americans losing their jobs in May, well below forecasts for nearly 9 million. That’s still a huge number of jobs lost, but it’s at least some evidence that the stock market really is reflecting a quick recovery in the U.S. economy.

Thursday & Friday Action:

Stocks opened higher but closed lower on Thursday after the Nasdaq 100 hit a fresh record high! The Nasdaq and Nasdaq 100 are the two strongest indices in 2020 and continue to race higher as the big institutional money continues to aggressively buy many technology stocks. In the short term, the market is extremely overbought and way overdue to pullback. Before Friday’s open, the Labor Department said US employers added 2.5 million new jobs which easily beat the Street’s estimate for a decline of -8 million. 

Market Outlook: Flood The System With Liquidity 
Global governments and global central banks stepped in with massive rate cuts and other “aid” packages to help “stimulate” both Main Street and Wall Street. So far, it is working as intended. 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.

Do You Know The Most Under-Valued Stocks In The Market?
 Our Members Do. Take a FREE TRIAL – CheapBargainStocks.com

Facebook
Twitter
LinkedIn

Here are more articles you may like

Claim Your Free Guide Today

Give us your email and we will give you the tools to change your life. 

FREE 7 DAY EMAIL COURSE

Learn about Early Entry Points & much more...

© ChartYourTrade | Contact us: website@chartyourtrade.com

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service