Bulls Stampede- October 9th, 2020
By Bulls trampled bears this week. The market soared globally and locally, and every sector and commodity rocked higher. We are not talking a little bit. It was big. The video this week has a lot of bullish information, if you have time to view it.
By Monday the President was home from his COVID19 diagnosis. The rally setup was there last week, and this week the follow-thru was immense. Institutional investors are standing at the buy window scooping up stocks.
Financials soared into earnings which was the set up last week. Be prepared for earnings from JPM, BAC on the 13th. WFC, C, USB on the 14th. It is options expiration this week, but based on the chart data this week, it wouldn’t appear that this will be an issue.
Regarding breadth, everything lit up. My strength indicators continued to climb, signalling the rally is underway. Fresh new highs on the cumulative advance/decine line for the NYSE. That is a harbinger of more bullish behavior. The percentage of stocks above the 200 DMA absolutely lit up. Stocks up easily outpaced the stocks down. The S&P 1500 advance/decline percentage broke to new highs. Bullish Percent data bounced as expected, McClellan Oscillators and summation indexes turned up into positive territory.
Marijuana names rocked on the news from Kamala Harris of their intent to legalize marijuana federally. The oil sector was the second biggest gainer. The oil names started rallying last Friday and continued higher almost every day. Every sector was up, as you’ll see In the summary tables. Globally – higher. Bond yields also support a move out of bonds into stocks. In currencies, the US dollar dropped, continuing a bull backdrop for commodities.
Summary: Up and more up expected. All three of my strength indicators are moving up, which is the easiest backdrop for investing.
Broad participation suggests higher highs. Be positive… the trend is higher.
Let’s jump into the charts. Click below to view the PDF version.
