Pandemic or no pandemic market keeps chugging along....

It has been exactly 7 months since COVID-19 started in WUHAN China on January 12th 2020, first concentrated in WUHAN then in other Chinese cities, it was generally downplayed initially even by WHO...but soon the whole world was alarmed and Pandemic was declared.....

Despite COVID-19 spreading fast, US indices maintained their rapid ascent to new all time high in mid February, then came the plunge in all indices breaching all key support levels, after 1 full month of relentless selling, all indices found their footing and started its climb back above and has been all clear since mid May.....into series of record all time highs in SOX & NASDAQ......

Ironically Russell 2000 is still 16.31% below its last high......

DOW is still 11.91% below its all time high..

S&P 500 is still 6.55% below its all time high....

Why do I give all the background of COVID-19 and its impact is to give a broader perspective of reality in markets.....

US market technicians were the-most reluctant to acknowledge strength in Nasdaq & SOX...always using S&P 500 chart in their thesis......

Trouble with stat is you can show whatever you want, but new all time highs are a real story and cannot be ignored by rational being...be it fundamental or technical.....

Judging from current flare up in Florida, Texas and other places, there is too much doom and gloom and ignoring all the accomplishments of Northeast...NY, CT, NJ in particular.....and majority of countries around the world.....

SO one must take lessons from what was accomplished within USA to get a better handle, even El Presidente is wearing a mask today......

YES it is bad wherever it is rising, but the flip side is, soon it will go down to a manageable level.

Market looks ahead usually 6 months .....

Everyone in USA and world sees a much better economy 6 months down the road.....

Moral of the story is " have patience " it gets darker before it gets better......

Stay with your own ideas and have very high comfort level with selected stocks, market have a habit of thrashing most popular stories quite often...so do not be a trend follower for too long...you may overstay your welcome....

Good luck with your own ideas!

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed