Market Report for Sep 09 2020
Most will never get to the top. Don’t be swayed, stay focussed and following the plan.
Nasdaq Composite +20.9% YTD
S&P 500 +3.1% YTD
Dow Jones Industrial Average -3.6% YTD
Russell 2000 -9.8% YTD
NYSE Vol: 1.0 bln
Nasdaq Vol: 3.8 bln
Portfolio % of Return:
FX & Comms: +6.08
As painful as it is to see a pullback in the near-term, it is typically better to have one for the longer-term trend to stay intact.
I won’t go through the reasons as to why we needed the pullback or even a consolidation in the last month as we have delved into this on the webinars several times but the fact the indices have managed to get towards at least their 50ma in September is good.
Yesterdays selling is a continuation from last week and beware the bottom may not be in yet but a clean pullback so far with no major drama. AAPL and TSLA led the decline with the latter company shareholders probably unhappy with the exclusion from the S&P 500 and showed this by selling their TSLA shares forcing price down 21% which is its worst one-day loss.
The sell-off in tech will come to an end at some point and we want that to ideally be near a support zone. As mentioned last week, taking profit was fine to do but if you have not taken profit, considering it now may not be the best time due to the proximity of support. Wait for a breach of this zone or strength before skimming any profit.
It seems we are witnessing tree shaking and if this is the case, be prepared for a new round of opportunities.
KYL if this move down is part of a larger move down.
Lets go trade!