US stock market adjusting to new normal......

US stock market is in the process of adjusting new way of conducting economic activity.

Dealing with COVID-19 has been more challenging .

New standard of operation is a new reality, balancing sales with social distancing requirements has many implications.

Law suits is most feared IF there is a breakout in any institution, associated cost of investigation and changes may challenge bottom line

No matter what the environment, from Q 3 it will be all about bottom line and top line.....

Many industries are already into Q 4 operation like cruise lines....for them Q 1 2021 will be the Q of reckoning......

While it is not all smooth sailing for any industry yet, SOX may recover the fastest.

SOX is near all time high area.....

Nasdaq also near all time high and has made a perfect golden cross...

GLD also near all time high.....

IF Nasdaq and SOX takes off then GLD has to bow down....

GLD may be most @ risk of going south.

S&P 500 also above 50 & 200 DMA

Russell 2000 & DOW below 200 DMA.....

XLE below 200 DMA and also very near 50 DMA support line....

Internals of this market is half decent, considering everything.....

CHINA & USA had a good trade meeting in Hawaii where Chinese agreed again to buy more agricultural products from USA......a possible thaw in trade relations....

COVID-19 is contained to much lower level in Canada while India is number 4th of most infected.....

This week may give us a much clearer picture IF market has factored everything about COVID-19... I have a feeling it may have discounted all the delays by cruise lines, airlines and casinos.....

Lots of opportunities in bargain bin IF you look around......

Old @ home play may cool off......

Good luck with your own analysis and take of strong and weak sectors.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed