by Dc1993x
Sorry bears, but unless something devastating happens between now and Monday… nothing will move the market downward.
Here’s why:
- People are convinced that the worst is over… many believe that everything will soon return to “normal”. While this may or may not be true… there’s no reason not to buy in at these levels.
- While some tech stocks may have a recovered too quickly, many other industries are still cheap.
- Stocks are forward looking – sure, Q2 / Q3 earnings will suffer.. but companies like Apple & Amazon aren’t going anywhere. Think “long-term earnings potential”
- I do believe a correction will occur at some point, but I don’t believe it will happen next week… there’s simply too much upward momentum right now
Prediction for next week: Bank stocks will carry the market upward
Nasdaq and technology carried the market upward this week, banks stocks dropped all week after “bad earnings”
Here’s a comparison:
Nasdaq is already pushing past 50% recovery
S&P is at around 50%
Dow is lagging behind
What happened today? Dow lead the charge
Why I’m bullish on the financial sector
- Dow is lagging because financial sector hasn’t fully recovered
- The government will not allow big banks to fail, thus overall risk / return is low
- The bull rally wants to continue, but some sectors (especially tech) are expensive. The financial sector is oversold… this is a good opportunity to buy-in
- Even from a “technical” perspective… the pattern has been extremely consistent. I’m expecting this to continue into next week
TLDR: Dow / financial sector will push markets upward next week
Disclosure: this is just my opinion.. I could be wrong. Please do your own DD and research before making any investment decisions.
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