Stock Market Today: Weak Rebound But Consumers Keep Up

September 10, 2020, 2:07 pm EDT

Weak Rebound But Consumers Keep Up

Today is the second day of the rebound wave after a sharp 3-day selling. But gains evaporate quickly so all indexes turn red color. 

As it is shown on the Nasdaq100 (QQQ) chart, heavy volume selling overcame low volume rebound yesterday. It indicates technology-focus Nasdaq and stocks suffer dumping. It is more likely there are more selling to come on these overvalued stocks like AAPL, AMZN, TSLA, ZM, NVDA, etc.

On the other hand, consumer discretionary stocks come strong (CCL, WYNN, LVS) because of re-opening of business after the late stage of COVID-19 pandemic. 

In this situation, the market may come to more selling on stock, particularly technology stocks. Fewer stocks related to hotels, restaurants, and cruises may rise up a little bit while waiting for the next triggering event. Investment environment becomes much tougher. Reducing market exposure by trimming down portfolio holdings might be a good choice. It is because strong and sharp selling may come back anytime.

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