SPY is close to a breakout
The Nasdaq 100 keeps making new all-time highs almost on a weekly basis led by the stocks that are benefiting from social-distancing - software, e-commerce, biotech, etc. The moves in that space have been historic and no one can tell when they will end. Shopify went from 500 to 1000 in three months. Who is to say that it can’t go to 2000 by the end of the year? Amazon went from 1800 to 3200 year-to-date. Who is to say that it won’t go to 5,000 in the next six months when we are in the midst of an unprecedented monetary and fiscal stimulus?
In the meantime, Chinese stocks had one of their best weeks after stronger than expected output numbers. The Chinese government urged its citizens to buy stocks because a strong stock market is important for the economic recovery.
Back in the U.S., the S&P 500 is setting up for a breakout. If financials join the market rally, a new all-time highs might not be too far.
The market continues to provide incredible trading opportunities on a daily basis. Here are just a few of the ideas and comments I shared with subscribers last week:
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