October 7, 2020, 10:59 pm EDT
Roller Coaster Rides
Yesterday stock markets went straight down and today was on the way up. As seen from SP&500 ETF SPY chart that today recovered almost all the drop yesterday. Stimulus plan was the reason for this kind of roller coaster behavior. Trump got COVID-19 last week and came back to work on Monday was another drama to drive markets. There are lots of unknown factors that come together within a month of the US presidential election. Thus, it is more likely more volatility is coming. Here are some highlights for our viewpoints:
- Stimulus plan is more likely to pass as a driving force for US economy
- Major indexes are above 50 day-moving-average so technically should be bullish mode
- Core sectors, material, industrial, and financial are solid and technology remains strong
- Bio-tech, renewable energy, and software keeps breaking out which is another bullish sign
Volume is relatively weak when comparing on up and down days. But, the overall picture is still bullish.