The Strength of the Market is: Strong
What a difference a week makes. At the beginning of last week, markets were on the verge of going into correction territory. Fast forward just a week and the idea of a Joe Biden presidency, along with positive news on the Covid-19 vaccine front has energized a stock market rally. As most the world enters the so-called 'second-wave' of the coronavirus, the positive drug trial data was exactly what investors were looking for, giving the 'reopening' stocks, like airlines and cruises, a big bump up today.
The economy continues to report positive data (i.e. the Employment Situation, Consumer Credit, Manufacturing) and this week, investors will be watching data points like Small Business Optimism and Consumer Sentiment.
As we are now mostly beyond the uncertainty of the 2020 elections, with a few exceptions, our price-trends and momentum research is showing a fully strong signal for global stock markets.