Market Report for Aug 10 2020
Penny shares may seem appealing but bear in mind, you get what you pay for. For a smart investment, the company needs to have value.
ZM @250.54 – closed session almost $1 lower in 50MA zone
Nasdaq Composite +22.2% YTD
S&P 500 +4.0% YTD
Dow Jones Industrial Average -2.6% YTD
Russell 2000 -5.0% YTD
NYSE Vol: 864 mln
Nasdaq Vol: 4.0 bln
The NYSE has encountered a rally recently which coincides with the dumb money inflow. This is the time to be patient and wait for the market to either rotate or complete the tree shaking which is what we can assume is taking place on Nasdaq.
In the last two webinars, I referred to cyclical stocks and that they could soon come into favour and signs of that are now appearing. It is too early to know if this will be sustained but one point to note is the NYSE volume is not showing much of an increase. You can use your RoC % indicator for a better view.
So for now, patience is required to see if S&P 500 and then Dow Jones Industrial Average can breakout of their prior ATH.
As I mentioned in a recent weekly webinar, expect a different environment now. One with tree shaking and noise.
Lets go trade!