Further confirmation for our summer rally base case scenario!

July 19th 2020

Market Review

U.S. stocks finished the week mostly with hefty gains. The Dow Jones Industrial Average gained 1.3% for the week to close at 26,671.95, whereas the S&P 500 advanced 2.3% in the same time period to finish at 3,224.73. Both averages posted their third straight weekly gain. However, the tech’s struggle this week led to a pronounced divergence between the Nasdaq and two other major indexes. Hence, the tech-heavy index fell 1.1% for its first weekly loss in three to close at 10,503.19. Most key S&P sectors finished higher, led by industrials, while the technology sector ended in the red. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower, near 25.7.

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Ingredients for a summer rally are accumulating, but volatility will remain high

July 12th 2020

Market Review

U.S. stocks continued to push higher in a quite volatile week. The Dow Jones Industrial Average booked a 0.9% weekly gain to end at 26,075.30. The S&P 500 recorded a 1.7% gain over the week and closed at 3,185.04. The Nasdaq rocketed 4.0% for the week to close at 10,617.44. For the year, the Dow Jones Industrial Average and the S&P 500 are down 8.6% and 1.4%, respectively, while the Nasdaq is up more than 18%. Among the key S&P sectors, the comm. services sector was the best weekly performer, while energy dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.3.

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The S&P 500 jumped 4% for the week

July 5th 2020

Market Review

In line with our latest expectations, all three major U.S. averages finished the holiday-shortened week with solid gains. The Dow Jones Industrial Average added 3.3% during the week to end at 25,827.36. The S&P 500 jumped 4.0% in the same time period to finish at 3,130.01. The Nasdaq rocketed 4.6% from the week ago close to finish at a record of 10,207.63. It was the S&P 500 and the Dow’s and biggest weekly gains since June 5. The Nasdaq posited its best weekly performance since May 8. Nearly all key S&P sectors ended in positive territory for the week, led by the materials sector. Financials and energy were the only decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.7.

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No need to panic as consolidation period still looks constructive in its nature

June 28th 2020

Market Review

Due to a sell-off on Friday, U.S. stocks finished the week in negative territory. The Dow Jones Industrial Average dropped 3.3% over the week to 25,015.55. The S&P 500 also booked a weekly loss of 3.3% to finish at 3,009.05. The Nasdaq shed 2.6 percent for the week to end at 9,757.22. All key S&P sectors ended in negative territory for the week, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 34.7.

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Healthy consolidation period possible but still no major deal-breaker visible

June 21st 2020

Market Review

In line with our latest call, U.S. stocks recovered significantly last the week. The Dow Jones Industrial Average gained 1.0% for the week to finish at 25,871.46. The S&P 500 added 1.8% on the week to close at 3,097.92. The broad index recorded its fourth positive week in five. The Nasdaq jumped 3.7% for the week to end at 9,946.12. Among the key S&P sectors, health care was the best weekly performer, while utilities dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 35.1.

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Too early to get concerned about the recent sentiment driven washout-day

June 14th 2020

Market Review

U.S. stocks wrapped a volatile week and due to single strong down-day, all three major U.S. averages finished the week finally in negative territory. On Thursday, all major indices recorded their biggest one-day losses since mid-March, posting declines of at least 5%. In the end, the Dow Jones Industrial Average declined 5.5% over the week to 25,605.54. The S&P 500 recorded a weekly loss of 4.7% to finish at 3,041.31. The Nasdaq shed 2.3% for the week to end at 9,588.81. All key S&P sectors ended in negative territory for the week, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 36.1.

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Melt up in place, as the S&P 500 rocketed 4.9% for the week!

June 7th 2020

Market Review

U.S. stocks rallied for the week, with one major average scoring a record close. The Dow Jones Industrial Average jumped 6.8% over the week to close at 27,110.98. The blue-chip index is only down 5.0% year to date after dropping as much as 34.6% in 2020. The S&P 500 rocketed 4.9% for the week to finish at 3,193.93. Friday’s rally put the S&P 500 down just 1.1% for 2020. At one point this year, the broader market index was down 30.3%. The Nasdaq ended at 9,814.08 and climbed 3.4% over the past week. The heavy-tech index became the first of the three major averages to climb back to an all-time high, advancing to 9,814.08 on Friday and touching an intraday record of 9,845.69. After tumbling as much as 25% earlier this year, the tech-heavy index is now 9.3% higher for 2020. All key S&P sectors ended in positive territory for the week, led by the energy sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed near 24.5.

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Absolutely no reason to be bearish (as tape condition looks extremely healthy)

May 31st 2020

Market Review

U.S. stocks were on track for solid weekly gains. The Dow Jones Industrial Average jumped 3.8% from the prior Friday’s close to end at 25,383.11. The S&P 500 advanced 3.0% for the week to close at 3,044.31. Nasdaq was looking at a 1.8% weekly gain and finished at 9,489.87. For the month, the Dow is on track for a 4.2% gain, the S&P 500 is set for a 4.5% climb while the Nasdaq is looking at a 6.7% advance in May. All S&P sectors ended higher, led by financials. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.5.

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Further range-bound trading ahead?

May 24th 2020

Market Review

U.S. stocks ended the week with solid gains. The Dow Jones Industrial Average gained 3.3% over the week to close at 24,465.16. The S&P 500 advanced 3.2% for the week to finish at 2,955.45. The Nasdaq advanced 3.4% over the past five days to end at 9,324.59. Nearly all key S&P sectors ended in positive territory for the week, led by the industrials sector. Health care was the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed around 28.2.

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Is the recovery rally running out of fuel soon?

May 17th 2020

Market Review

U.S. stocks finished Friday with slight gains but the major indexes capped the week with losses. For the week, the Dow Jones Industrial Average slid 2.7% to 23,685.42. The S&P 500 finished at 2,863.70 and posted a weekly drop of 2.2%, notching its worst week since March. The Nasdaq dropped to 9,014.56 and finished the week 1.1% lower. Most key S&P sectors ended in negative territory for the week, led by energy. The health care sector was the only gainer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 32.6.

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