This week the markets continued their improbable V-shaped recovery with the QQQ’s now just ~10% away from the previous all-time highs.
Let that sink in for a moment. Even with all the doom and gloom if we get one more week of gains like we had this week with the QQQ’s, we are within spitting distance of those all-time highs.
This can be a confusing time to trade as there seems to be a disconnect between the progress of the global pandemic, the economy, and the stock market.
The important perspective as a trader is to not allow your personal opinions bias your ability to see the markets clearly.
This means disconnecting from what you think should be and focus on what the market is telling you.
The market has been giving some strong pointers and as I show in this week’s video NFLX and AMZN are two companies that have clearly benefited from the COV-ID 19 pandemic and are now trading at all-time highs. I also take a look at the rest of the FAANG names and another tech bellwether – MSFT – to see what kind of clues we can find there.
From an unbiased technical perspective – the NA indices have now made 4 successive higher highs with higher lows on the weekly charts and trading well above the month and quarterly open so the path of least resistance continues to be up.
With 2 weeks left of trading in April, all of the NA indices are still trading inside month.
By definition so long as we are trading inside month then we need to be alert for potential weekly reversals.
But, and this is an important but, if there are no weekly reversals the trend remains to the upside.
Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For – April 20 -24, 2020.