July 12, 2020
Weekly Market Outlook
By Keith Schneider
US equities once again put in a mixed performance with small caps (IWM) lagging, down -.76% for week, while NASDAQ 100 was up +4.67 % and registered yet another new All-time high on Friday. Breath figures (SPY) show the number of stocks above their 200-day moving average at 41%, a divergence from price action as the key benchmark has been trading above that key average for almost a month.
Using stimulus money, hordes of Robin Hood traders have used their new riches to buy TSLA and other NASDAQ stocks, helping Elon Musk to become richer than even Warren Buffet. TSLA’s stock has jumped 50% …. FOR THE MONTH! The traditional Robin Hood mantra “Rob the Rich and Give to the Poor” has a new twist. It is funny and ironic, short sellers who are mostly “smart money “such as hedge funds and other professionals who bother themselves with funnymentals lost 18 billion recently being short TSLA. This is making Robin Hood traders look genius, although most likely short lived. Our belief is momentum and relative strength are edges not to be ignored, regardless of the reasons, if you manage the risk.
This week’s highlights are:
Hope you all enjoying the summer and stay safe