Will Market Continue To Rise Under ‘Collapse?’

2020-06-30 | Simpler Trading Team

Why have so many people been attracted to trading while the world faces an ever-growing pandemic threat?

Because, to this point, the market has recovered much of the severe March pandemic-induced losses.

The second quarter of 2020 wrapped up today as the best quarter in decades for the stock market.

Yes, the best in decades.

The Dow closed at 25,812.88 points to rise .85% (adding 217.08 points on the day). The Nasdaq broke above 10,000 again at 10,058.77 points for a 1.87% jump while the S&P 500 spiked 1.54% to 3,100.29 points.

For the quarter, the Dow is up 17.77% — its best quarter since it hit 21.56% in the first quarter of 1987. Also for the Q2 2020, the S&P hit 19.95% — bested only in the fourth quarter of 1998 when it hit 20.87%

Not to be outdone, the Nasdaq was up 30.63% this quarter — its largest gain in a single quarter since it hit 48.18% in the fourth quarter of 1999.

This is an amazing bullish run considering more than 30 million jobs were lost during this quarter, parts of cities burned in riots, political conflict is off the charts, the U.S. and world went into pandemic lockdowns, and economies around the world have been decimated with years of recovery ahead.

Will the markets’ “rise in the face of collapse” trend continue?

No one knows.

For the immediate future, Simpler Trading is keeping tabs on risk heading into the July 4th holiday.

The short week historically sees a rally into the long weekend, but a sound plan is to stay flat over the break.

Simpler considers it “priceless” when there is an extra day to stay 100% in cash and “free your brain” with rest, relaxation, and historic celebration.

We Saw: a market continuing its bullish run — 

  • All major indexes hitting best highs in decades
  • Political rumblings of another round of government stimulus
  • Positive results across major industry sectors

We’re Watching: short-term opportunities before the holiday —

  • Setups that lead to flat over the long weekend
  • If the bullish run has long-term stamina
  • Setups in: SPX, CMG, TSLA

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