D&D Note (9.10.2020) ~ Yesterdays Dead Cat Bounce Turns Back Into Selloff Today As Stimulus Bill Fails ~
Usually a selloff lasts 3 days (hence the 3 day rule) then you get a dead cat bounce (which we got yesterday) followed by a resumed selloff (which we got today).
That is exactly why D&D took some profits off the table during yesterdays rally in CRM, SHOP, and MSFT.
The GOP can’t get their skinny bill passed as Democrats block bill as its not enough and has nothing to aid cities and states.
Jobless claims still show there is a lot more to go before we get anywhere back to sustainable job growth.
Both these pieces of news caused the markets to fall into the close.
Citi make Jane Fraser the first female CEO of a US major bank taking over for Michael Corbat who is retiring next year.
Tesla tried to rally against the downward market action but gave back gains in the last hour to go red. However, late buying at the end of the session propelled it to close in the green on an otherwise red tape.
The NFL kicks off tonight – but will look very different. Tonights game will only have 20% fan capacity all socially distanced and have to wear masks.
There was an apocalyptic California Bay Area yesterday due to the wildfires where the sky turned orange and seemingly the sun never rose causing night all day.
D&D Long Holding Targets that are starting to get near our price targets to begin buying include:
JPM
BA
JNJ
VZ
Our other Long Holding Targets are still overstretched on valuation and need to see a bigger pullback to begin buying include:
MSFT
TSLA
PYPL
HD
DIS
BRK.B
For our Trading Portfolio (opposed to our Long Term Buy and Hold portfolio) targets are all still too stretched on valuation as well and need to see a further pullback to begin buying include:
ARKK
ARKW
ARKG
UNH
CHWY
NFLX
NVDA
Current Holdings in our Trading Portfolio we are looking to add to our positions on a big pullback include:
TSM
WNS
CRM
GOLD
SHOP
AMZN
FB
GOOG
AAPL
CGC
As of today our current holding in Trading Portfolio by weight are:
AAPL
AMZN
TSM
MSFT
CGC
GOLD
V
JPM
FB
SHOP
WNS
UNLRY
GOOG
CRM
DIS
PYPL
BRK.B
Markets fell into the close but finished just off the lows of the day.
DOW down -1.45%
S&P 500 down -1.76% (3339.19)
NASDAQ down -1.99%
VIX up 3.12% to 29.71
Oil down -2.76% to $37.00 a barrel.
Gold down -0.23% to $1950.30 an ounce.
The FDA chief says he has ‘no intention’ of overruling career staff on Covid-19 vaccine decision.
Global Virus cases: 27.99 million+
Global Virus deaths: 906,122+
U.S. Virus cases: 6.39 million+
U.S. Virus deaths: 191,702+
~ Dave James / Principal Trader and Market Strategist
D&D Investments 
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