D&D Note (7.21.2020) ~ Market Rotation Leads to Energy Up And Tech Down On The Day ~
A Global rally sparked last night in China which followed through into Europe and fed into American markets today. Price action was virtually opposite of yesterday as investors rotate the sectors being bought.
Energy up 6.15%
Financials up 1.91%
Tech down -1.06%
Markets did pair gains heading into the close with the S&P 500 turning red and back to D&D’s top end range target of 3250. In the final minutes of trading we got a slight uptick to close at 3257.30
Risk aversion is still happening at the same time with Gold almost back to all time highs.
Joe Biden laid out tax plans to fund projects targeting provision for avoiding capital gains taxes on property sales to raise the needed cash for childcare and elderly services.
The EU passes major stimulus of 750 billion euros.
Negotiations begin in Congress on the next round of fiscal stimulus.
High flying ETFs from Ark are attracting many investors including D&D. We are looking to buy on a pullback and specifically looking at the following:
Yesterday Amazon added $117 billion in market cap in just the single trading day.
DOW up 0.60%
S&P 500 up 0.17% (3257.30)
NASDAQ down -0.81%
VIX up 1.55% to 24.84
Oil up 2.33% to $41.76 a barrel.
Gold up 1.30% to $1841.10 an ounce.
Dr. Fauci has said he was not invited to White House briefing which is worrisome as he is the worlds leading infectious disease expert.
In a major about face Trump has now started promoting wearing masks on Twitter, which helped boost the reopening trade in markets today.
Global Virus cases: 14.77 million+
Global Virus deaths: 611,599+
U.S. Virus cases: 3.85 million+
U.S. Virus deaths: 141,426+
~ Dave James / Principal Trader and Market Strategist