D&D Note (8.3.2020) ~ Tech Leads Risk On Rally With S&P 500 Rising Above 3300 Intraday ~
Tech stocks rallied today led by Apple & Microsoft both at record highs while tech laggards on the day were Amazon & Google.
Top sectors on the day included Tech, Health, and Energy. The worse performing sectors being Real Estate, Utilities, and Consumer Discretionary.
A classic Risk On feel in terms of sector performance.
Todays buying propelled the S&P 500 to trade back above 3300 during intraday trading. The all time closing high set on February 19th 2020 was 3386. Stocks closed the day off the highs.
August is traditionally a volatile month as many traders head off for vacation. It is wise to not chase at these levels and rather build up liquidity to take advantage of markets in the next 2 months leading up to the election.
TikTok has till till September 15th to sell its U.S. unit and Microsoft is in deep talks to purchase by the deadline. Trump has said he is ok with Microsoft buying the company and also added the U.S. government should be paid a substantial amount for the deal.
CGC continued to rally gaining 4.27% today and is still the best of bread when it comes to cannabis stocks.
The Relief Bill is still stuck in negations between GOP and Democrats.
DOW up 0.90%
S&P 500 up 0.72% (3294.61)
NASDAQ up 1.47%
VIX down -0.33% to 24.38
Oil up 1.39% to $40.83 a barrel.
Gold up 0.04% to $1976.64 an ounce.
Dr. Fauci warns against rushing to open schools in districts where cases are still elevated. He also suggested teachers should wear face shields.
Global Virus cases: 18.16 million+
Global Virus deaths: 690,953+
U.S. Virus cases: 4.69 million+
U.S. Virus deaths: 155,196+
~ Dave James / Principal Trader and Market Strategist