Hi everyone, stock indexes spiked unexpectedly this week, and are basically saying “we don’t care who wins the election, we just need someone to win.” Uncertainty gone = stocks up.
From a chart perspective, I don’t see much stopping the index from ripping to all-time highs and beyond. I still hate the high valuations here, even if Covid-19 didn’t exist. As a result, I’m not buying much for long term holds (still holding a medium/large sized position in MRO and small position in ODT).
Weekly chart of SPY below. It looks like the index wants to break above the trading range (rectangle).
Boeing had a nice spike this week too, which is unfortunate for me, because I want it lower so I can start a long position.
Either way, let’s see what happens next week. This could be the start of a failed breakout, which could result in much lower prices in the near term. Otherwise, I don’t see much stopping prices from going much further upwards. In other words, I’m near term bullish.
Enjoy your week and stay safe!
