July 19, 2022, 6:20 pm EDT
Reclaiming Bullish Bias for the Medium Trend
The stock market rallied 2-3% today to claim its bullish bias for the medium trend (50-day moving average lines). Across-the-board advances paint a green color throughout almost all industries as shown in the industry map.
The consumer discretionary sector presented many winners from S&P 500 :
- Clothing: PVH, UAA
- Cruise / Travel / Entertainment: CCL, RCL, EXPE, LYV
Re-opening after COVID-19 with less restriction could be the number one reason for investors to bet on a brighter outlook from consumers. At this moment, inflation concern is out of the window for today.
Other leading industries are a technology-focus group from Nasdaq 100:
- Internet: MTCH, NFLX
- Travel / Hotel: BKNG, EXPE, WYNN
- Semiconductor: NVDA, LRCX, AMAT, AMD
- Airline: UAL
Dow Jones 30 also posted top 10 leaders at least getting 3% above which is impressive. In general, today was a surprisingly bullish day.
However, we are suspicious to think that the bottom is set until the long-term trend line (200-day-moving-average) is recovered. At this moment, the rally is based on the technical rebound and short squeeze because trading volume is still low. Therefore, we are cautious to watch the development of earnings and their reactions.