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Stocks Were Back To Their Winning Ways Yesterday, Nasdaq Makes New All-Time High Close
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Stocks were back in the green yesterday with the Nasdaq finishing at another new all-time high close.
The economy continues its reopening. And in spite of the bumps along the way, namely the increase in coronavirus cases, the market continues to push higher.
There's been a parade of better than expected economic reports over the last couple of months that show the economy is bouncing back bigger and faster than expected. And we're seeing pent-up economic demand being unleashed virtually everywhere.
As the economy continues to reopen, and more people are brought back into the workforce, and spending continues to rise, the economy will continue to get stronger, and stocks should continue to climb.
While new coronavirus cases have been on the rise, the market's gains suggest that traders view this as transitory and that it will not significantly impact the long-term reopening of the economy.
Of course, if the spread continues, or worsens, or if the mortality rate starts to increase, that will be bad news health-wise and for the economy.
But for now, the market is focused on the former and not the latter.
There's also a great deal of excitement around the prospect of a vaccine coming by year's end or early next year. We've heard about some of the success that Moderna, Pfizer, and AstraZeneca have had in their work on a vaccine. But in total, there's 160 vaccines being developed worldwide from many other companies.
And that's not even counting the myriad of other companies working on treatments.
A successful therapeutic, not just for the severely ill (which Gilead's Remdesivir will be prescribed for), but for the moderately ill, would be a breakthrough.
But a vaccine will be a game changer. And that will be a day to remember because that will truly mark the beginning of when the world can finally get back to normal.
In the meantime, the economic reopening continues. And top analysts are expecting unprecedented economic growth for the remainder of the year, along with record setting growth next year.
And that's why stocks are soaring, and why it looks like there's a lot more upside to go.
So make sure you're taking full advantage of it.
That means getting into the right stocks. Staying out of the wrong ones. And also learning how the big money algorithmic traders (aka high frequency traders) are going about their business as well. To learn how you can benefit from their moves, be sure to read our latest commentary which outlines three steps to help you beat these algorithmic trading programs at their own game...
3 Ways to Profit During COVID-19 from High Frequency Traders
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
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