With hopes of a rapid rebound from the SARS-COV-2 pandemic traders have pushed stock futures higher to begin Tuesday’s Session. Vaccine trials are underway giving a bit of hope another wave of the virus will be stopped. No one knows of course, but unlike other pandemics it appears a swifter response this go around. Conspiracy theories aside we can only go on what is in front of us rather than what we think may happen. In March, most thought it was the end of the world was afoot. The Federal Reserve and the US government acted and so far, has helped the market claw back much of the losses seen in the first quarter of this year. Whether or not this is sustainable remains to be seen. Dealing with what we know, and the present is our job. Our job is not to forecast what will happen but
deal with the present in a disciplined manner.
The NASDAQ Composite leads the major market averages. For the year, the index is up 3.92%. S&P 500 is down 8.5%. The Dow Jones Industrial average is down more than 14%. Small Cap stocks continue to take the brunt of the selling down more than 18% on the year. Thanks to the NASDAQ100, index is up 7.8% on the year the NASDAQ Composite is positive for the year. We have yet to see market participants shy away from large cap technology stocks. AMZN and NFLX have done very well considering the pandemic. There is opportunity all around us and it is upon us to seize the moment. Will you capture it?
One large cap tech stock that has done a nice job building a handle post earnings is AMD. Let’s not forget perfection does not exist in this current environment. While it might have in one point in time, we are in 2020 with the Federal Reserve bank pumping trillions into the market. Keep an on the stock for a breakout. There is always opportunity.
We hope you had a great long weekend and wish you the best of luck to your trading this week.
