MaR Oct 09 2020

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Market Report for Oct 09 2020

In a bull market, negative news is good news

Trade Zones:
None

Market Trend:
Up

Market YTD:
Nasdaq Composite +27.3% YTD
S&P 500 +6.7% YTD
Dow Jones Industrial Average -0.4% YTD
Russell 2000 -2.4% YTD

Market Volume:
NYSE Vol: 799 mln (B)
Nasdaq Vol: 3.5 bln (B)

New Positions:
NIO @21.85

Portfolio % of Return:
Stocks: +691.59
FX & Comms: +2.25

PORT Oct 09 2020

Comments:
We could classify Thursday as a nothing bull day. Nothing spectacular happened but the day was bullish.

Yesterday saw a broad-based advance and looking a little deeper, this was mainly led by value stocks. Underperforming sectors are now starting to perform with energy at the top of that list again closing up 7% for the week.

We can now start to watch small-caps. The Russell 2000 is the first of the indices that has broken out of its high that was formed in the last 2 months. So are we now seeing a rotation or is it small-caps are finally joining in? I think it is the latter as they could be gearing up to participate in any end of year rally.

If we do have a rally at the end of this year and the indications suggest we would as has been detailed n the weekly webinars, be ready for it. Don’t miss out and be prepared. Breakouts may be acceptable at that stage.

If any rally fizzles out due to pandemic issues or election disappointments on the market, be prepared for it. KYL.

Have a good weekend Dynamic Traders.

Lets go trade!