Stocks closed mixed on Wednesday with the Dow, S&P, and Russell 2000 modestly lower. But the Nasdaq had a solid gain and hit a new all-time high close, just like the other indexes did the day before.
The markets have been on a tear this year. And with the recent upside breakouts in all of the major indexes, it looks like it's just getting started.
With the economy rebounding at an unprecedented rate (Q3 GDP just come in at 33.1% (which was the largest in history), with more gains expected in Q4, and forecasts for full year GDP in 2021 to grow at the fastest pace in 38 years), there's good reason for stocks to be soaring.
Then when you add in the positive vaccine news (there's now three COVID vaccines in the pipeline by Pfizer and BioNTech, Moderna, and AstraZeneca that are likely to be available by year's end), stocks are poised to soar even more. That's because these breakthroughs are being hailed as the catalysts that will finally let the world get back to normal. And when our entire economy comes back online (not to mention the rest of the world), that should make for an explosive rally.
In the meantime, our economy continues to impress.
That was underscored by Wednesday's MBA Mortgage Applications report which jumped 5.0% last week; the New Home Sales report which came in at a better than expected 999K units (annualized) vs. expectations for 975K; and the Durable Goods Orders report which increased by 1.3% vs. the consensus for 0.9%.
What we're seeing in the economy and the market is history in the making.
So make sure you're taking full advantage of it.
That means getting into the right stocks and staying out of the wrong ones.
One way to find stocks with big upside potential is to look at insider trading (the legal kind). Insiders at publicly traded companies are required by law to disclose their purchases. And do so within 48 hours of their trade. When top executives at companies are buying more shares, or when large numbers of executives are making new purchases, that can send a powerful signal that something good is happening to that company, and could soon be happening to that stock. And that can lead to big gains.
To learn more about this type of insider trading and how you can benefit from it, please check out our latest commentary...
The #1 Insider Signal Every Trader Should Know
Best,
