December 9, 2020, 1:04 pm EST
IPO and Market Status
Doordash (DASH) was listed for IPO this morning from 102 to 182 about +80% gains that gave this food delivery company about 58 billions market capital size. But stock markets are still in red color as of now (DJIA -0.5%, S&P 500 -0.9%, Nasdaq -2%).
This mode is called “Bullish But Be Cautious” as illustrated in the chart on Dow Jones Index ETF (DIA).
We can see the market hit bottom in March and the first wave of sharp angle rally extended to June. Then another uptrend channel continues its second rally from June to December. Notice recent rally from November forms a rising wedge pattern which could become bearish quickly at the junction.
Thus. it is time to be cautious.