D&D Note (6.16.2020) ~ Retail Sales Results Boost Markets Despite New Covid-19 Worries ~
Stocks opened the day strong out of the gate on the back of better than expected retail sales in May which were up 17.7%, roughly coming in 10% higher than estimates.
Intraday we did fall to session lows at the start of the second hour of trading due to increased Covid-19 worries but quickly reversed back up although closed below the opening high.
Beijing was forced to close schools again as the city sees a resurgence in Coronavirus.
Texas continues to see increased hospitalization hitting a new high up 66% since Memorial Day.
Florida just set their one day record for virus cases up 3.6% from the day before, deaths also increased.
D&D maintains our high end target for the S&P 500 of 3250. Last week we hit 3236 before the Bearish Island Reversal (caused by the gap up then gap down chart formation).
We will look to trim further profits once we get back near 3250.
DOW up 2.04%
S&P 500 up 1.90% (3124.74
NASDAQ up 1.75%
VIX down –2.12% to 33.67
Oil up 2.80% to $38.16 a barrel.
Gold up 0.50% to $1736.00 an ounce.
The Vans U.S. Open of Surfing has been canceled for this year which is held in Huntington Beach California.
Scientists estimate that one in five people globally (roughly 1.7 billion people) are at risk of developing sever cases of Covid-19.
Global Virus cases: 8.09 million+
Global Virus deaths: 438,806+
US Virus cases: 2.12 million+
US Virus deaths: 116,700+
~ Dave James / Principal Trader and Market Strategist