My Market Forecast: More Gains!
The market is getting choppy once again following last week’s massive post-election rally.
But we’re ready for anything…
My strategy – as always – is to position for success. You know I’ve been bullish I don’t think any of the news related to the election or a potential coronavirus vaccine changes anything. This market is setting up for gains.
Check out my latest appearance on TD Ameritrade Network where I talk about where I see the market heading as the holidays approach, how I always sell into strength to book consistent gains, and my next hot trade…
Remember, Optimism always wins!
Keep it In the Money,
Alan Knuckman
Editor, In-The-Money
Chart of the Day: Does the Nasdaq need a break?
Looks like we have another crazy week ahead of us…
Following the huge post-election rally, Pfizer and BioNTech announced their joint COVID-19 vaccine is more than 90% effective, sending stocks soaring Monday morning.
Obviously, there are plenty of details to work out. But the vaccine news ripped through the markets. We saw “reopen” names jump higher while “stay-at-home” stocks were clobbered. The popular big tech names lost their footing, and the Nasdaq drifted lower. Not only did it underperform most of the day — it also fell off a cliff at the close as skittish investors took profits on the 2020 tech darlings. Many of these stocks posted double-digit losses.
It was more of the same on Tuesday, as the Dow and S&P continued to outperform the tech-heavy Nasdaq.
As of Tuesday afternoon, the Nasdaq was looking like it wants to try and fill the those post-election gaps after failing at 12,000:
However, I don’t think it’s time to get too bearish on the Nasdaq just yet. Remember, many of these stocks have ripped off triple-digit rallies since the market bottomed in March. They deserve the benefit of the doubt – even during this hard reset.
I also don’t trust a lot of these moves in “reopen” stocks. It’s possible that reality will come back to hit some of these beaten-down names hard once this euphoria wears off…
— Greg Guenthner
