For the NASDAQ 100, its been a rally! Never underestimate the power of the Fed probably has to be the best lesson. The second best lesson is portfolio managers worldwide have tightened the diversity in their portfolios to focus on Nasdaq 50 stocks. The hedge funds that trade more frequently have made money both short and long this market.

With employment turning up from the deep lows, this is a late indicator but supportive of higher markets. Having the Nasdaq higher than February is apparently normal as it must have been undervalued then! The conversations around news flow are really difficult to absorb. There is an entire financial analyst community using earnings to value markets, yet the earnings for 80% of the publicly traded market are going to come in dramatically lower. So the discussion has evolved to only looking at 2021 earnings, because we have already had a re-rating for 2020. That conversation does not fly with me at all. Who can guess what 2021 is going to look like?

SSIH

I will say this. The Schnell Strength index continues to stay above 75% and the Nasdaq market continues to drift higher. The $SPX is still grappling with the change in market behaviour as shown on the chart below. The early June highs are a hurdle, but Thursday, July 2nd we are pushing above the horizontal resistance at 3150. Can we close above there?

There are lots of areas of the market that appear to be setting up for a move higher in the second half. As the COVID19 cases expand worldwide, this continues to be a news generated headwind but price actions in the leading names are definitely higher.

 

 

Leadership

Lots of new names are emerging in leadership here and it is important to not miss the start of new trends.

What does the second half look like?

Every month, I hold a conference call with subscribers to GregSchnell.com. I will be holding the monthly conference call on Thursday, July 2nd at 5 PM ET.

Here is an example. If you would like to listen how to approach the potential for massive upside from Natural Gas, I would encourage you to subscribe before the call with this sale listed below.

For the July 4th celebration and Canada Day in Canada (July 1), I have created a membership drive for July. Anyone who would like to listen in on some of the biggest trade ideas for July, can try the monthly membership, or take the annual membership at $360 off! That’s a full-on celebration! Follow this link for what I expect to be a spectacular second half is certain industry groups. Go to gregschnell.com and use the coupon code HOLIDAY.

I like to use big themes, and we have quite a few setting up for the second half of the year.

The Natural Gas chart was featured in the weekly subscriber video on the weekend telling people to be ready for the reversal. There are numerous ways to play it and I’ll cover off many of those on the conference call, Thursday July 2nd at 5 EDT, 2 PM PDT!

I have lots of free presentations in July if you would like to hear some new ideas for the second half of 2020.

I will be speaking at the Canadian MoneyShow Online on July 9th at 10:20 AM ET, which is no charge to attend. If you would like to register to listen in for this event, sign up here to get other great ideas. GregSchnell.com/presentations

I am also presenting at the Wealth365 summit on Tuesday, July 14th, 2020 at 9 AM ET. Click here to be on the distribution list and win a free e-book from me! There are a limited number of spots per speaker, so register early for this free presentation!

Keep watching for more presentations coming up. I’ll also be working with StockCharts TV on Saturday, July 18th for a big mid-year review with David Keller!

Lastly, keep your eyes tuned to some of the explosive trades coming up in July! Subscribers enjoy five ideas every day from Dwight Galusha, CMT as well! Enjoy the holiday weekend!