By Gorilla Trades. Originally published at ValueWalk.
Commenting on large-cap benchmarks trading just a tad below their recent all-time highs and today’s trading, Gorilla Trades strategist Ken Berman said:
Q3 2020 hedge fund letters, conferences and more
Large-Cap Benchmarks Maintain Long-term Technical Breakout
The major indices are virtually unchanged at midday following a choppy and directionless morning session on Wall Street. Global risk assets pulled back from their recovery highs today amid the post-Christmas spike in the number of new COVID cases, but domestic equities remain stable. Stocks are set to conclude this crazy year in a quiet fashion, with the large-cap benchmarks trading just a tad below their recent all-time highs, successfully maintaining this winter’s key long-term technical breakout.
In economic news, the weekly number of new jobless claims declined unexpectedly for the second time in a row, hinting at stabilization in the job market following a month of worrisome numbers. The positive surprise triggered a bounce in the dollar’s market following yesterday’s new multi-year lows against the currency’s major peers, with the slight global risk-off shit also favoring the dollar and safe-haven assets, in general. That said, the bullish trends remain intact across asset classes, and the relatively quiet last week of trading solidified positive trends on Wall Street.
Market Wrap
Dow: 30,370, – 40 or 0.1%
S&P 500: 3,730 – 2 or 0.1%
Nasdaq: 12,850, – 20 or 0.2%
Russell 2000: 1,978, – 2 or 0.1%
Market breadth has been relatively weak this morning, with decliners outnumbering advancing issues by a less than 3-to-2 ratio on the NYSE at midday. Only 4 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 77 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. Most of the key sectors are in the red at midday, reflecting the negative global sentiment, with only financials and communication services eking out early gains, which could mean that bears could have a slight edge during the afternoon session. Stay tuned!
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