Big gains last week despite continued fears over the virus. Crude Oil pushed higher as states and other countries begin to open back up albeit slowly. It remains unseen what will happen as states begin to pen gradually. Many simply won’t open for some time, but others are. Georgia is the most notable. In the Northeast corridor NY and NJ do not appear to be opening any time soon. Most cases and deaths in the US are clustered around the NY and NJ metro areas. We do not study nor do not have knowledge behind pandemics to surmise why, but we do know how the market has reacted. The NASDAQ 100 has been a leading index and continues to defy the odds and what appears to be gravity. Given the swift actions of the Federal Reserve Bank and actions from lawmakers we have thrown a band-aid on our current situation. We have no clue if this is sustainable, but we will let the market do its thing.
Earnings season continues, but it appears it really does not matter with the Federal Reserve pumping trillions into the market. The Bond Market is not inverted believe it or not. Last year we saw the inversion in the yield curve, and many predicted a recession. No one saw a pandemic coming. A period of consolidation would do the market some good. Given the influx of free money this may not be possible. We cannot get mad at the market here as many are. Opinions are very dangerous especially in our current environment. There is no need to be a hero either. Stay disciplined and execute on it.
A good solid few week of rest would go a long way for this market. Sure, there will be opportunities intraday for those who are equipped. Long-term bases need handles and a rest period in the market would help build those. We hope you have a great week in the stock market. Do not forget to join Big Wave Trading by going here.
