We have come a long away from the March lows as the pandemic accelerated. Through Federal Reserve action there is no doubt this market would be no where near where it stands currently. Will a second wave of the virus hit? A question the market is desperately seeking to find an answer to. Odds are in favor of the virus hitting once again, but how will states react? We do know the market will get the support of the Federal Reserve and do not count out more legislature action too. Where does this all lead is anyone’s best guess. Had you been able to ride the wave higher acting with a sound exit strategy has netted you quite the gains. Positions sizing and proper exits will help you add to your gains and keep you from losing your stake. Futures are indicating a lower open and will kick off an interesting week.
A pause here would not be a bad scenario for this market. Consolidating the gains from March lows would go a long way setting up for a nice summer rally. Another scenario could be we rollover and take out the March lows. Everything is on the table at this point and there is no need to lock in on an opinion of what the market is about to do. We do not own crystal balls. The future is unknown and the only recourse we have is reacting to the price action of the market. We’d love to be able to tell you we know everything and can predict the future. Anyone who says they can run far away. They do not have a special talent in seeing the future. Stay the course.
AMZN, AAPL, and NFLX are clear cut NASDAQ winners. AMZN and NFLX are quarantine winners with many people using their services as most were unable or simply did not want to leave their house. NFLX entertains while AMZN delivers everything under the sun. As we proceed in the summer we will see if SARS-COV-2 will emerge as a large issue, but for now we must focus on what is in front of us. We hope to see you in our chat room to grab intra-day trades.
