Trump Puts Stimulus Pressure On Congress

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Posted: Aug 10, 2020 1:21 PM
Trump Puts Stimulus Pressure On Congress

Source: AP Photo/Alex Brandon

It was another strong week for the market, which might have appeared to go out with a whimper.  But in many ways, Friday’s was one of the best sessions of the week. The index exhibited resolve and finished higher, even as those hugely influential names struggled and leaving Communication Services and Technology down on the day.

Conversely, nine other sectors were higher with significant strength in financials.

S&P 500 Index

+0.06%

 

Communication Services XLC

 

-0.12%

Consumer Discretionary XLY

+0.15%

 

Consumer Staples XLP

+0.54%

 

Energy XLE

+0.13%

 

Financials XLF

+2.14%

 

Health Care XLV

+0.32%

 

Industrials XLI

+1.71%

 

Materials XLB

+0.34%

 

Real Estate XLRE

+1.36%

 

Technology XLK

 

-1.49%

Utilities XLU

+1.80%

 

Market breadth was overwhelmingly bullish.

Weekly Market Breadth

NYSE

NASDAQ

Advancers

2,304

2,582

Decliners

772

910

New highs

289

477

New lows

36

59

Up volume

13.2 billion

12.9 billion

Down volume

8.2 billion

7.4 billio

Dark Clouds

Cloud related stocks took it on the chin last week as many saw earnings estimates peak and pullback.  There is no doubt these stocks were on autopilot for a long time and most were overvalued.  But now, this could serve as a great list for traders looking for oversold ideas.

 Stock

52 Week High

Last 

% From 52 week High

FSLY

117.79

79.33

-48.48%

SMAR

60.45

42.5

-42.24%

ZUO

16.59

11.73

-41.43%

MDLA

43.05

30.45

-41.38%

PD

39.58

29.85

-32.60%

DDOG

98.99

75.28

-31.50%

BOX

22.09

17.37

-27.17%

EVBG

165.79

131.77

-25.82%

AVLR

144

122.71

-17.35%

DBX

24.14

20.69

-16.67%

ESTC

99.56

85.35

-16.65%

CRWD

118.57

101.75

-16.53%

TEAM

198.41

170.93

-16.08%

TWLO

288.81

249

-15.99%

PAYC

342

296.66

-15.28%

RNG

306.46

269

-13.93%

APPF

180.55

158.98

-13.57%

NET

45.28

40.06

-13.03%

DOCU

229.83

204.7

-12.28%

TENB

36.5

32.74

-11.48%

COUP

319.55

289.31

-10.45%

OKTA

226.89

208.23

-8.96%

ZM

281

258.73

-8.61%

SQ

158.43

147.22

-7.61%

SHOP

1107.92

1053.12

-5.20%

HUBS

268.43

258.46

-3.86%

 

Portfolio Approach

 

On Friday, we added a new position in Materials in our Hotline Model Portfolio.


Today’s Session

President Trump acted over the weekend with four executive orders.

  • $400 for unemployed workers
  • Deferred payments on payroll tax for employees earnings under $100,000
  • Moratorium on evictions
  • Pause on student loan payments

I hope this puts pressure on Congress to act.  But right now, politics are still outweighing the urgency of keeping the rebound going, as we continue to deal with coronavirus issues.