D&D Note (7.20.2020) ~ Vaccine Hopes Push Markets Positive On Year With Tech Leading ~
Renewed Vaccine Hope fuels todays rally, the NASDAQ gets its mojo back, the VIX drops below 25.
The Oxford University / AstraZeneca potential vaccine show positive early results with production of antibodies and killer T-cells.
Analysts say the vaccine fails to impress on the competitive aspect. Shares of AstraZenca rallied last week leading into todays reports, shares popped 10% today then gave back almost all gains finishing up only over 1%.
Pfizer and BioNtech also showed continued positive results with their vaccine demonstrating a high level of T-cell response.
The Amazon price target raised to $3,800 by Goldman Sachs, the highest price target on the street, which pushed AMZN (up nearly 8%) and other tech stocks up today.
If you take out the 6 big tech stocks the S&P 500 would actually be down on the year around 7%.
The S&P 500 with todays action finally hit D&D’s high end trading range target of 3250. The market could over shoot now to the upside with the resurgence of tech, however we are more likely to see profit taking across the markets.
The 200 day moving average of the S&P 500 is 3034 and creates the bottom of the recent trading range. Meaning markets are likely to begin reversing now back to the low end of the range.
Jamie Dimon warns there are multiple scenarios for back half of the year. JP Morgan now sees base scenario of 11% unemployment and worst case scenario of 23% if the Covid-19 virus surges in the fall.
Airline stocks fall on the day as we’ve seen the end of business travel as we used to know it.
DOW up 0.03%
S&P 500 up 0.84% (3251.84)
NASDAQ up 2.51%
VIX down -4.71% to 24.47
Oil up 0.22% to $40.68 a barrel.
Gold up 0.40% to $1817.73 an ounce.
Gov. Andrew Cuomo of NY warns that crowds of young people at bars are ‘a threat’ to the state reopening.
Florida and Texas continue to lead the U.S. in daily Coronavirus cases.
Global Virus cases: 14.6 million+
Global Virus deaths: 608,420+
U.S. Virus cases: 3.8 million+
U.S. Virus deaths: 140,811+
~ Dave James / Principal Trader and Market Strategist