Trump Bounces Back, Markets Follow

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Posted: Oct 06, 2020 12:19 PM
Trump Bounces Back, Markets Follow

Source: AP Photo/Evan Vucci

President Trump notified the world that he would be leaving Walter Reed National Military Medical Center, and the stock market went into overdrive.

All the major indices closed near the highs of the session. And in the process, they pierced key resistance points. Let’s see if there is any consolidation, but technically, there should be a clear shot back to the September 2nd highs.

S&P 500 Index

+1.68%

Communication Services XLC

+1.54%

Consumer Discretionary XLY

+1.29%

Consumer Staples XLP

+0.52%

Energy XLE

+2.81%

Financials XLF

+1.67%

Health Care XLV

+2.01%

Industrials XLI

+1.62%

Materials XLB

+1.90%

Real Estate XLRE

+0.44%

Technology XLK

+2.01%

Utilities XLU

+1.10

Widening Winner’s Circle

What’s even more encouraging is that buying is fanning out with the winning column and climbing rapidly.

S&P 500

 S&P 500 winners are now at the highest level since September 2nd. The average gain is just about the same (243 winners with an average gain of 23.5%).

  • 227 average gain: +23.32%
  • The top 20 average gain: +83.74%        

NASDAQ Composite

Nasdaq winners are now at the highest level since the Covid-19 selloff. And now, there are more winners than losers for the year (506 versus 503). Moreover, the gains have been monstrous. The average gain for the winners; 71%, and the top 20, 590%.

  • 506 average gain: +71.47%
  • The top 20 average gain: +589.93%    

Symbol

Name

Last

YTD %

 NVAX

Novavax Inc

109.5

2670.60%

 OSTK

Overstock.com Inc

80.8

1049.43%

 MCRB

Seres Therapeutics

29.9

755.94%

 WKHS

Workhorse Grp

24.38

694.74%

 ZM

Zoom Video Communications

484.2

610.80%

 ADAP

Adaptimmune Therapeutics

8.46

605.83%

 LVGO

Livongo Health Inc

143.8

472.43%

 RUN

Sunrun Inc

78.6

470.46%

 DKNG

DraftKings Inc

60.2

460.56%

 FBRX

Forte Biosciences Inc

44.81

460.14%

 TSLA

Tesla Inc

424.65

408.86%

 APPS

Digital Turbine

35.7

399.72%

 PLUG

Plug Power Inc

15.62

396.84%

 CELH

Celsius Holdings Inc

23

367.91%

 ARCT

Arcturus Therapeutics Ltd

49.97

359.98%

 OTRK

OnTrack Inc

74.5

357.82%

 EXPI

Exp Realty International

50.98

349.51%

 ACMR

Acme Research Inc

75.92

309.81%

 IMMU

Immunomedics Inc

85.72

305.01%

 TWST

Twist Bioscience Corp

83

292.14%

Stronger Breadth

Market breadth was strong, although there were more losers than I would have guessed for such a strong session.

NYSE

  • 2,290 advancers
  • 773 decliners
  • Up volume: 3.11 billion
  • Down volume: 658 million

NASDAQ

  • 2,629 advancers
  • 861 decliners
  • Up volume: 2.87 billion
  • Down volume: 754 million

New 52-week highs for the New York Stock Exchange and the NASDAQ Composite reached their highest levels since September 2nd at 119 and 128, respectively.

Hotline Model Portfolio Approach

There were no changes to the Hotline Model Portfolio yesterday. Today, we are adding a position to Materials.


Investing Themes:

Short Squeezes

  • Jinko Solar (JKS), 21% of the float is short

Pre-announcements

  • Alteryx (AYX), shares popped after-hours after CEO guides financials higher

Today’s Session

While 75 bps is low for a bond yield its breaking out and signaling good things for the economy and stock market.  We are looking for a move to 1.00% from here.

To see the chart, click here.