Saturday, August 1, 2020
It was a very good week around these parts. My AAPL, AMD, AMZN, BAND, CODX, FB, GBTC and PYPL all ripped higher. I haven’t trimmed any of these, however, I do still think raising cash through the balance of the summer is a good idea. I want cash ready to buy when we get that lower reversal I expect towards October.
Broader Market Review
The Dow is the current weak link among the broader market proxies. It continues to be pressured by descending overhead resistance and is now trading below important support from the Corona Crash low. The S&P 500 looks a little better having crossed above resistance and appears to be in a more neutral position. The Nasdaq is maintaining it’s higher trajectory from late June and has room to run up to 12,000 if it can stay above the ascending yellow line.
In fact all three proxies (driven by Nasdaq) might fill the higher gap before rolling over later in summer and into the election. The Dow and S&P 500 just might try to challenge the pre Corona Crash highs if the Nasdaq continues to push higher as tech is still running led by the software and semi bulls.
So, if we get the secondary collapse, the good news is as time passes the ascending support levels rise which creates a higher cushion to support any collapse we might see prior to the election.
Dow
S&P 500
Nasdaq
In anticipation of lower entries into the election this is week four of highlighting those individual stocks and ETF’s that I expect to perform the best during the next important leg up. I continue to love technology, especially software. While software companies are extremely vulnerable now, like they were last fall, I expect they will continue to outperform once we get the secondary dip.
MSFT
NEE
NET
NFLX
NKLA
NOW
NTES
NVDA
OKTA
PYPL
And, of course, we must include Elon.
TSLA
Have a great week,
Don