Stock Market Today: June 1st - 5th, 2020

Discussion in 'Stock Market Today' started by Stockaholic, May 29, 2020.

  1. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    In the world of QE, good news = oh yes the economy is recovering, market goes higher. Bad news = oh yeah the economy sucks and it means we will get more QE and stimulus, market goes higher :D :p
     
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  2. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    What a recovery, pretty close to the ATH :eek:
     
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  3. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    SQ breaking through a quintuple top.
    Weekly chart:
    [​IMG]
     
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  4. Stockaholic

    Stockaholic Content Manager

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  5. T0rm3nted

    T0rm3nted Moderator
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    Imagine being told 5 years ago that in 2020 there would be:
    • A worldwide pandemic that killed over 100,000 people in America in like 3 months resulting in national shut downs with the highest levels of unemployment in history
    • Mass protests across America that were so influential, many cities across the global had enormous protests as well
    • A trade war with China
    • An Iranian leader killed by Americans (not talking the politics of this, just that it happened)
    I'm sure I'm forgetting some, but you get the point.

    Now imagine I told you all that 5 years ago, but told you every day the stock market kept going up re-approaching all-time highs.

    What in the actual fuck is going on

    (Yes I know the answer is the stock market has zero relation to reality and it goes brrrrrrr)
     
  6. OldFart

    OldFart Well-Known Member

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    ANNOUNCEMENT:
    Due to COVID-19, we're going to have to ask everyone to riot from home, and destroy your own shit!!
     
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  7. Stoch

    Stoch Well-Known Member

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    Don't forget
    the drop in corporate earnings
    the increase in PE to an estimate 30 forward PE
    and the loss of many small businesses the likely wont be coming back.
    And don't forget a -40-50% GDP number coming up
    Latest estimate: -52.8 percent — June 1, 2020

    Now that's a formula for all time highs

    Also, remember the market is forward looking, except for any bad events like trade wars, pandemics which can not be anticipated,
    but a V shaped recovery is easy to anticipate, even though no one knows the shape of the recovery and the data has just recently turned less bad, not expansionary.
     
    #47 Stoch, Jun 3, 2020
    Last edited: Jun 3, 2020
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  8. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    "DraftKings stock soars on hopes"
     
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  9. Ken34

    Ken34 2017 Stock Picking Contest Winner

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    SQ hits new 52 week highs today, ive been in it for a couple months now....this market is nuts. we really might be headed back to ATHs at this rate, wow.
     
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  10. Stockaholic

    Stockaholic Content Manager

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    indeed, and in the case of the nazzy its basically right there back at ATHs :p

    [​IMG]
     
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  11. Stockaholic

    Stockaholic Content Manager

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    actually, it looks like on a "closing basis" (not intraday) the q's could actually close at a new ATH, absent any late day selloff.
     
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  12. Stockaholic

    Stockaholic Content Manager

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    whatever the catalyst is for this raging rally off the bear lows (yeah i know it's all about the brrrrrrrrrr, that's pretty blatantly obvious :p), this could be one of the largest 50-day gains ever for the spx.

    historically speaking when the spx has seen a gain greater than +20% within a 50-day stretch, leads to continued strength.

    given that we have QE-infinity, and nothing matters anymore, looks like the chances of this repeating are probably very high.

    [​IMG]
     
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  13. T-Coonazz

    T-Coonazz Member

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    Seems like the market is over due for a reality check again. Out of the millions unemployed now only at best 25 to 50 percent are maybe going back to work for who knows how long.
     
  14. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    This market continues to amaze us :eek: As of now I don’t think the Friday jobs report will matter that much even if it is much worse than expected :p
     
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  15. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Emerging markets on a tear lately on the weaker dollar :eek: Gold has been taking a hit though despite the weaker dollar thanks to the fast rising equity prices :p
     
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  16. Stockaholic

    Stockaholic Content Manager

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    haha, agreed 100%

    on the flip side however, do we get another 500+ handle bump in the dj30 if the # is much better than expected like adp turned out to be today? :p

    gonna quote your post from last night since i think you absolutely hit the nail on the head imo

    ^^ i feel that is 1000% accurate right there :p

    ultimately, all the news is awesome news for the market. but if we get even the slightest whiff of good news, then that is just spectacular news for the market :D

    could be setting up for a nice blow off move in the market, which that of itself could actually trigger the next, and much needed pullback/correction. we'll see.
     
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  17. Stockaholic

    Stockaholic Content Manager

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    barring some late down ticks going into the close, looks like nazzy (q's) will close at a new ATH :p

    just as if the past few months never even happened lol

    i think it was @Venom08 to first point this out years ago, but typically the market does not put in its ultimate top until you have all majors in new highs.

    so with the nazzy basically recapturing 100% of the covid crash, actually bodes well for the broad market.
     
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  18. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Haha yeah, it seems like we just go up with either good news or bad news. I guess with good news people are buying the cyclical stocks that would benefit from the recovery and load up defensive sectors like healthcare or staples if we get bad news. I guess that’s what happens when you have endless liquidity provided by the central banks :p
     
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  19. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    The SPX now just down about 3% YTD, pretty crazy with all of the things that have happened in 2020 so far :eek:
     
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  20. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    I think we are at the end of growth outperforming value. Although I have said this before, I think I'm making a better read this time :cool:
    [​IMG]
    Not saying this chart will go down next; maybe it goes sideways. But I don't think it's getting another higher bounce.
     
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