“Americans are Happy, they are doing ‘The Trump’”— Paul Ebeling
Last week’s action
US stocks opened Thursday with a gap to near support.
to bounce stocks back upside testing rebound we will be able see if the leaders will break higher, they did setting up launch a rally into some big earnings reports.
The post-market Fake news headlines said that stocks closed lower for a 3rd day because of concerns over the US stimulus and a COVID-19 spike in the European Union. That was during after hours and was simply not true
Before the open, we were given a litany of reasons as to why this market is just bad and to run run run from the marke.
Some analysts said, the market has put in a good run off of the 24 September lows, but they also said that it is stalling below its old highs and is likely forming a Double Top, most do not know what a Double Top is, that will lead to another selloff.
The test I saw said that the indices would make before the run to the end of the year. It could have occurred at the old highs, above the old highs or it could be below the highs, after a 2nd run off of the low that matched the 1st run, it did.
NASDAQ: The NAS Comp and NAS 100 held and bounced. Volume was low and there was no heavy selling and some late buying was to the Northside.
S&P 500 gapped to the 10-Day EMA then reversed to flat. There was no heavy selling and we saw a good test lower, then a rebound. All of the selling volume over the past 4 days has been light.
The Bulls are convinced President Trump, the American consumer and the stock market will hold up fine, as politicians appear increasingly likely, approve another round of fiscal stimulus before next month’s elections.
House Speaker Nancy Pelosi (D-CA) said Sunday that few differences remained with President Trump’s administration on a wide-ranging virus relief package and she is optimistic legislation could be pushed through before Election Day.
President Trump told reporters in Nevada: “I think Nancy Pelosi maybe is coming along. We’ll find out.“
“I want to do it at a bigger number than she wants. That does not mean all the Republicans agree with me, but I think they will in the end,” he said.
Investors looking for comfort can point to retail sales and the latest readings on consumer confidence.
Bulls cheered Friday on data that showed September retail sales rose by 1.9%, far surpassing the 0.7% consensus forecast produced by a Dow Jones Newswires survey of economists.
On Top of that, the preliminary reading of the University of Michigan’s consumer sentiment index (MSI) edged up to 81.2 this month from 80.4 in September, the highest since March.
Again, the success of The Trump Economy, and it is strong, is the stock market’s driver. Tune out the Noise!
Pay attention, always take what the market gives.
Have a healthy week, Keep the Faith!