S&P 500 Nearing Golden Cross
Another positive week for the stock market despite light volume trading. Leading into the long holiday weekend stocks continued to push higher. Believe it or not and despite more and more COVID cases this market continues to push higher. Too many are expecting this market to crack wide open to the downside. Yes, we are still in a pandemic and this market continues to push higher. We are not trying to find the reasons why this is happening. Our concern is what has happened and act accordingly. There is no need to go further to find the why as it will only distract us from making gains in our portfolio. At the end of the day we only care about price and price alone.
The NASDAQ has been the leading index since the lows in March. Many at the time were not interested in seeing this market push higher. Even with the Federal Reserve’s actions traders were to busy looking ahead rather than what was happening in front of them. It is important to understand your bias and quickly dismiss it. Even now we have the S&P 500 nearing a golden cross where the 50-day crosses up and over the 200-day. It is not a perfect indicator but does display the price action the market has undergone the last 3 months. Focus on what is what has happened rather than simply trying to guess what the market may do.
AMZN and AAPL continue to be leading the NASDAQ 100 and the rest of the NASDAQ stocks. AMGN is another name pushing higher. Biotechs have been big winners over the past few months as many race to produce a viable vaccine for SARS-COV-2. We do not know what the future holds, but we do know we have plenty of stocks ready to continue to push forward. Now, it is up to you whether you want to continue to take advantage of this stock market. Judging by the AAII survey only 22% are bullish while bears sit at 45.89%. Not what you would expect from a stock market so far away from recent lows.
Stay the course and we hope you have a great week!
