October 20, 2020, 12:50 pm EDT
Motor Runs Fast
General Motors (GM) +7% is breaking out today to lead the consumer discretionary sector running fast. US Stimulus plan is definitely a driver behind this rally today with DJIA +240 points. Consumers cannot wait to get the check to buy their favorite items or spend on essential stuff.
It is important to be reminded that this rally is based on government sponsor low-rates, money-printing strategies to go through COVID-19 tough periods. It means the rally continues as long as the support is there. But, what if the support is not there ?