MaR Aug 25 2020

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Market Report for Aug 25 2020

Wall of worry

New Positions:
None

Trade Zones:
AMAT
DIOD
LSCC

Market Trend:
Up

Market YTD:
Nasdaq Composite +26.8% YTD
S&P 500 +6.2% YTD
Dow Jones Industrial Average -0.8% YTD
Russell 2000 -6.0% YTD

Market Volume:
NYSE Vol: 773 mln
Nasdaq Vol: 3.8 bln

Comments:
Cyclical stocks outperformed on Monday. A point we discussed in the weekly webinars. Expect more upside in cyclical as progression or positive news comes out relating to coronavirus testing, vaccines or cure. The health care sector was the only one to close negative for the session.

Some tech stocks started the session at ATHs but that wavered and a lack of follow-through saw them close lower by session end. Investors bought the dip but Nasdaq still closed off its highs while Dow Jones and S&P 500 closed almost at session highs.

Dow Jones has had its biggest percentage gain in 13 trading days. Could it finally be catching up? The interesting thing is 14 of 30 stocks in the Dow Jones had higher volume than Friday’s session and only 10 were above their average. In addition, only 1 stock had volume that was more than 100% of its average. As mentioned on this weeks webinar, AAPL has really helped out the Dow and the AAPL split has really gained interest for whatever the reason.

PORT Aug 25 2020

Lets go trade!