Slow Summer Grind Higher August 28, 2020
Posted by Tom in Thoughts.Tags: Stock market analysis, stock market commentary, technical analysis
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Aug. 28, 2020 – The markets just grind higher. Nothing dramatic, just a slow & steady grind. It seems like nothing really matters. The economy (looking past that), earnings (looking off into the future), social unrest (been there) or politics (waiting until October). As long as there is very cheap money, not much matters. A big geo-political event might have an impact, but it looks like the real danger is earnings. I doubt that this market has “felt” the 38% decline in the Gross Domestic Product . . . . yet.
Just keep in mind that fewer and fewer stocks are holding up these index values. If it wasn’t for the Technology sectors, well then things would be a lot different. A single mis-step by a tech darling would bring a reawakening I feel. Until then we just have to be extra careful.
Sentiment is neutral but nearly everything else is positive. Prices climb the upper price channel (purple) while volume is dropping. Not much buying, but not any selling either. I think this is the “summer doldrums” with many traders “out” until after Labor Day (Sept. 7 in the U.S.). I remain invested, but have extra Cash to deploy; it’s just not a great environment to do that now.
No surprises here. It’s mostly Technology leading the way. I do note that Treasury bonds have been moving lower (interest rates increasing a little) over the past couple of weeks.
Not much else to dwell on. Have a good week. ……. Tom …..
Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.
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