August 14, 2020, 12:14 pm EDT
Engine Keeps Running Fast
Highlights of the market today are
- Retailers including Nordstrom (JWN) +6%, Dillard’s (DDS) +11%, Macy’s (M) +8%, Kohl’s (KSS) +5%, and Urban Outfitters (URBN) +6%. Second round of government checks are an incentive for consumers to keep buying, though the $1,200 check or anything is not finalized yet.
- Stock markets are running fast in all cylinders including Fedex (FDX) +2% today, impressive +50% in 6-7 weeks (140-210). Furthermore, Target (TGT) made a +10% smooth uptrend gain for the past two weeks (124-136).
- Technology stocks are in the sky for almost 5 months: TSLA, GOOGL, AMZN, MSFT, AAPL.
- Semiconductor, defense, material, banks are all lining up to carry on the rally. It is true that the rally has been extended since March 23, the bottom.
Government market friendly policies, vaccine hopeful and consumer optimistic behaviors fuel the rally to stay at high speed. But, it is also important to keep in mind that markets are overvalued and overheated. Any major event could rock the markets to sharp pullback.