Bulls continue to roar - Trading Journal (11.16.20)

avatar

image.png

Can not stop the bull train as all indexes closed at record highs. The small caps Russell leads the way while NDX is lagging and has yet to reach back to its all time highs close in Sept. 2, but not far away from that number, QQQ on Sept. 2 closed near 303 and current close is at 293. NDX may already be able to pick up some additional points because right after close TSLA was confirmed to be allowed to be apart of the S&P 500, and on that news TSLA made new record highs near 460.

image.png

As tech appears to be stalling where FANGM was unable to muster additional gains one has to believe markets are about to coil. This is because FANGM stocks have barely move out of their zone since last Summer. With a range bound it will be an explosive move coming soon. A lot of signs are calling for a bearish outlook as it maybe a top but what if there is so much liquidity that its not just small caps that get bought but so too will tech in the near future?

image.png

Volatility for NDX is also lagging versus IWM. The signs of option buying among tech stocks has slowed but what happens next will be interesting since tech does not have the same excited as during the summer.

What could possibly derail value over high growth tech?

image.png

If Covid continues to spread in the US and force another lock down this may turn into a rotation out of value and back into tech. The vaccine can not come soon enough.

Posted Using LeoFinance Beta



0
0
0.000
0 comments