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So far, this trading week has helped refine a point in longer-term market activity: the dips we saw at peak-pandemic close to a year ago were all temporary. The “crisis” the markets felt during the U.S.-China trade dispute (I put “crisis” in quotes because it is well out of the same league as the Covid-19 reality) were another mere blip on the screen. We’ve been in an overall robust — and supportable: just look at the better-than-expected Q4 earnings numbers — bull market for, literally, years now. It’s a good thing.
Of course, weeks like last week show that there can be plenty of turbulence where lots of pressure is applied — short-squeezing hedge funds betting against more than 100% of companies like GameStop (GME - Free Report) and AMC (AMC - Free Report) — so market activity would do well to proceed with caution, even with such a rosy outlook overall. Especially at current levels, which are at yet brand-new all-time highs as of last night’s close.
Even though markets are selling off slightly going into this morning’s opening bell, we’re not seeing any outward influence that may cast a dark cloud anywhere in particular. Even the short-selling, while still ongoing, doesn’t look to be something too dangerous for a wide array of investors at present. Q4 earnings season cools down this week, though we get Twitter today after market close, and there are no big economic reports like we saw with new jobs numbers last week.
If the market is currently awash in too much cash sloshing around without a particular place to go — which may explain the short-squeezing purge, SPACS, as well as Tesla (TSLA - Free Report) putting $1.5 billion into Bitcoin yesterday — then a bit of booking of profits may well be what explains this morning’s down open. But with a major stimulus package coming in the next few weeks, it’s tough to see where a particular market slide might occur. That said, likely these near-record highs reflects a pricing-in of this stimulus to a good extent. Questions or comments about this article and/or its author? Click here>>
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s.
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Markets Prove They're Long-Term Bullish
Tuesday, February 9, 2021
So far, this trading week has helped refine a point in longer-term market activity: the dips we saw at peak-pandemic close to a year ago were all temporary. The “crisis” the markets felt during the U.S.-China trade dispute (I put “crisis” in quotes because it is well out of the same league as the Covid-19 reality) were another mere blip on the screen. We’ve been in an overall robust — and supportable: just look at the better-than-expected Q4 earnings numbers — bull market for, literally, years now. It’s a good thing.
Of course, weeks like last week show that there can be plenty of turbulence where lots of pressure is applied — short-squeezing hedge funds betting against more than 100% of companies like GameStop (GME - Free Report) and AMC (AMC - Free Report) — so market activity would do well to proceed with caution, even with such a rosy outlook overall. Especially at current levels, which are at yet brand-new all-time highs as of last night’s close.
Even though markets are selling off slightly going into this morning’s opening bell, we’re not seeing any outward influence that may cast a dark cloud anywhere in particular. Even the short-selling, while still ongoing, doesn’t look to be something too dangerous for a wide array of investors at present. Q4 earnings season cools down this week, though we get Twitter today after market close, and there are no big economic reports like we saw with new jobs numbers last week.
If the market is currently awash in too much cash sloshing around without a particular place to go — which may explain the short-squeezing purge, SPACS, as well as Tesla (TSLA - Free Report) putting $1.5 billion into Bitcoin yesterday — then a bit of booking of profits may well be what explains this morning’s down open. But with a major stimulus package coming in the next few weeks, it’s tough to see where a particular market slide might occur. That said, likely these near-record highs reflects a pricing-in of this stimulus to a good extent.
Questions or comments about this article and/or its author? Click here>>
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s.
Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>