Dow: +185.28…
Nasdaq: +156.37… S&P: +40.82…
The S&P (+1.1%) and Nasdaq (+1.3%) closed at fresh record highs on Tuesday, as the market continued to feed off the recent bullish momentum and recovery optimism. The Dow (+0.6%) and Russell 2000 (+0.9%) followed behind.
The market ran into a speed bump late in the afternoon on news that Majority Leader McConnell disapproved of the $908 billion bipartisan stimulus package proposed by several lawmakers earlier in the day. Mr. McConnell prefers to combine $429 bln in unused Fed funding toward a year-end spending bill.
Shares of Zoom Video (ZM 406.31, -72.05, -15.1%) succumbed to profit-taking interest following its better-than-expected earnings report and upbeat guidance. Moderna (MRNA 141.01, -11.73, -7.7%) faced similar selling pressure after starting the day with a 16% gain.
Watch these extreme momo stocks like ZM. When the worm turns these names could get brutalized.
Greed is definitely getting up there. We could goose it to the upside through Christmas, but I’m still reducing as things go higher.
The US Dollar is putrid right now. Its been going down and today it broke some very key support.
As a result, gold and silver both had great days. I would have added some names but I want to see if this dollar breakdown is real or not. The metals still have work to do.
Sometimes they overthrow support and then rally hard to the upside. If that happens to the dollar, then gold/silver could turn lower again. Best to wait a day or two.
It is possible though that that metals are ready to rip again.
EWZ, EWW, RSX, EEM…all exploding higher as the DXY crashes. Note that Latin America is one of the main winners from this DXY implosion as the dollar weakness now is spreading to these currencies as well.
Updated P&L here.