The charts in this video are powered by MarketSmith
The market continues to rise on both bad and good news for the economy. The dips are still getting bought ferociously. High-momentum software stocks just keep making new all-time highs squeezing short sellers out of their shares.
The Fed has expanded its balance sheet to record levels showering the market with unprecedented liquidity. The government has come up with a new stimulus package every couple weeks or so. The FOMO is in full force as more and more sidelined money is joining the party.
The number of new coronavirus cases is climbing rapidly and yet the death rate is declining. There seems to be a new vaccine breakthrough announcement almost every week. Every time it is announced, hotels, restaurants, and retailers rally for a day or two but can’t sustain their momentum for too long. By now it has become clear that no matter the breakthroughs, the world is at least 6-9 months away from a safe, tested, and working vaccine and even when we get one, it is not really going to stop some of the strong trends that accelerated due to COVID – e-commerce, working from home, etc. The money never sleeps. It always goes somewhere and major trends tend to last a lot longer than most expect.
Try my new subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders, and much more. See some of the recent testimonials.
Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.
Check out my free weekly email. to get an idea of the content I share with members.