The stock market continues to defy the record surge in Covid cases.
The S&P500 NASDAQ Dow Russell all sit right near the fresh record highs hit on Monday.
The path has been paved. I think we will revisit and break them. It's been healthy for this market to give the allure that downside lies ahead. That we are one negative headline from this entire bull market unraveling.
And yet in reality its all the negative headlines that keep this market moving higher.. which doesn't make sense on the surface, but it does when you did deeper.
The COVID-19 collapse in March is a perfect example. The markets fell sharply, the quickest fall ever from 52 week highs to 52 week lows. And then we recovered, in spite of the recession, and moved to new record highs... despite the recession.
One thing missing from this market all these years, is the euphoria. It's not there. And you could argue the skepticism continues to grow about the sustainability of this market.
I think its going higher. I said that before the election. I said it in 2014, I said it in 2011. And you know what.... its been the right thing to say. So I'll keep saying it until I'm wrong.
With that being said. There are plenty of stocks setting up. A few I really like short to medium term. Gaming. PS5 out last night, sold out quick. Its a new cycle for gaming consoles. And of course the game from home crowd amid the Pandemic.
GME
ZNGA
and MMM
I think MMM is going over $200 again in the short to medium term. The timing will be key. I'll be looking for DEC and 2021 calls.
Great chart set up.
That is all.
Have a great day.