Groups have switched from bear to bull market territory and they still have plenty of room to play catchup. Even when we get hit with waves of bad news. Nasdaq, did okay, quite a difference when i was out there when it was just a sea of red. Stocks opened up terribly. But then the strong bull markets that im talking about, the ones that are underneath, they surfaced, they quickly took over and we rolled back a big chunk of the decline buy buy buy something i pointed out on squawk on the street. When a rally has leaders from many different groups, and the better breath we have, the more kissable this market is, and thats what were seeing right now. Who are these leaders im talking about . Some youre very familiar with, because we talk about them all the time yes, bull market number one, the work from home cohort, which is a cluster of smaller bull markets. Zoom video, and at the orefron are the cybersecurity Stocks Companies need to be about protection when they put everything on the cl
Extremely that would send an already sagging market even lower to the weekend when President Trump spoke, he was so mad that the market was able to make a comeback, now ultimately dipping just 18 points the nasdaq surging 1. 29 lets understand our idea of measured response is not chinas idea of a measured response. I think theyre going to see this as a real provocation, and theyll feel compelled to respond, which brings us to the game plan for next week. Mondays all about retaliation from china at this point, we all know how this story goes, right it always is tit for tat every time President Trump lands a blow, its met with a counter blow we have to presume china escalates things, if only to show they understand the end game, which seems like containment or isolation except this time maybe were the ones being contained. For decades we refused to recognize the peoples republic of china and our government treated them like an outlaw or the outlaw that they were. Then president nixon in
Today. With the dow jones average skyrocketing 530 points, s p 1. 32, nasdaq 1. 72, one point before more saber rattling with china. All sorts of beaten down stocks, though, were higher. While the covid19 winners, well, they got slammed theres just one tiny problem with this action we dont actually have a vaccine. Does that mean the stock market is getting ahead of itself lets unpack the issue first this rally is based not just on hopes of a vaccine but a firm belief that the whole virus problem isnt nearly as dire as we thought a lot of people feel it has been blown out of proportion by the media, and the president s right, the people feel the president s right when he says we should open up everything betting on a vaccine makes sense. Since the beginning of the pandemic they warned us a vaccine would take a long time the fastest was the mumps which took four years. Every day were bombarded about another attempt to end this nightmare. Today we heard merck is working on a Magic Technol
Anticipate what will work in that time frame and what wont but after another shocking day, particularly for the sell in may and go away crowd, where the recovery stocks roared, the dow gaining 533 points, nasdaq advancing 7. 7 , the market does not lend itself to that easy divining right now the future is too binary the market feels much more like a horse race where there can be only one winner in a very crowded field of contenders. But its a long race and were still far from the homestretch so it could go either way. Who is running in this race . The first group is the subset of the cramer covid index the storks that enable the stayathome economy think everything from zoom, video, papa johns, dominos. Papa johns 33 sales, thats good news for that horse second group, the recessionproof stocks, mainly the food and consumer Package Goods plays especially ones that make hygiene supplies. During the lockdown, worries about covid, hey, but covid may be waning, lockdown is ending. Third, you
It may not rhyme but its more compelling than sell in may and go away. It was something i heard many years ago and then it turned out to be a terrific summer rally, because of a rhyme sell in may and go away is suboptimal advice, but this may it just so happens the markets run too much versus if fundamentals the dow plunged 622 and the s p losing 8. 2 . And the nasdaq knowsdiving 3. 20 off the rails. Now, after a week that ended in a bombshell after President Trump talked about the possibility of retaliating against china for not doing enough to stop the coronavirus, i dont love the timing here but if theres one thing weve learned, you need to take the president seriously when he threatens to take action against china, because hes done whatever he says and thats bad news for the stock market let me put it this way in 2018 and 2019 we went after the peoples republic with both barrels. We were in a position of strength strong gdp growth and incredible job market 30 Million People have lo