Why is the stock market rallying? Is this going to last? What are the latest news in the stock market, let’s dig a little into the stock market.
All 3 big indices had a great day yesterday as they continue to gain back momentum since late in the trading Friday as well as the Monday trading session, the Dow was up over 2% yesterday DOW CHART while the S&P and the Nasdaq were both up over 1,7% SP CHART with the Nasdaq 100 catching up in late trading to the others after being the laggard in the group NASDAQ CHART. Meanwhile over 80% of the companies were up in the trading sessions despite volume being mostly below the average CHART. The biggest gainers were industrials, consumer discretionary and technology while the Energy sectors keeps trailing the market SECTOR CHART.
The volatility also seems to be declining as we have seen another decline of about 2,5 points, the VIX closing at 34,6 VIX CHART this is a very good indicator that the stock market will regain momentum as it has done in the past. MOMENTUM CHART
Meanwhile the individual investor sentiment is exactly even on a bull/bear ratio. As this I believe is a great contrarian indicator INVESTOR SENTIMENT , the bearish investors have been increasing by 2,3% in the last week, if this continues to climb, I believe the buying opportunities in the market will become even better. I also believe that there is lots of cash on the sidelines that could come back in the market in the coming period which will also boost the stock market.
Shares are up pretty significantly in pre-market trading with the Nasdaq 100 being almost 3% while recording this video, they were even up almost 4% at one point in earlier trading. PRE-MARKET Here are some big economic events for today. I am interested to see the petroleum inventories as they are a good reflection on the recovery of the economy. TODAY'S EVENTS
Yesterday most auto stocks saw a jump in value AUTO STOCKS as a strong report from Ferrari and the increased expected demand for vehicles, especially EVs in China bumped the sector. One company that seems to be announcing good things everyday is Ford FORD NEWS , as the new CEO Jim Farley has done a terrific job since starting. They have great growth potential with big vehicles coming up like the Mustang Mach-E, the EV F-150 and the Bronco. Also, another big winner in the last weeks has been Nio as the company is looking to enter the European market, the shares are up huge in the past year NIO NEWS. While the used auto car market also seems to be rising with Carvana leading the group after a great Q3 report, good growth guidance and some insider buying also. CARVANA NEWS
Tesla was another big gainer yesterday, up more than 5%, the company finally gaining some traction after trading slight down and sideways in the last weeks, the stock has an RSI level of 51 barely while it has seen a lower and lower average trading volume. I believe they have a great edge in technology and a huge head start from all the other car makers, as I believe the company is not only valued for it’s car manufacturing but for it’s technology also, despite this I don’t think that many people take into consideration the data that the company will be able to monetize through they’re cars, especially for Insurance, Maps and Advertising, while they will also benefit from a huge increase in demand for EV cars in the next decades. TESLA CHART / DATA OPP / EV PREDICTIONS
Some big news yesterday came from overseas as the Ant Group IPO was suspended in both Shanghai And Hong Kong ANT NEWS as the biggest loser from this was Alibaba who saw the stock drop more than 8% on the news the biggest drop for the company in almost 6 years when they fell almost 9% at the beginning of 2015, the company having around a 33% stake in Ant Group BABA NEWS. Ant issued a statement in which they apologize for the event and stated they will try to resolve the problem as soon as possible ANT STATEMENT as they were on the way to become the biggest IPO in history at over 34,5 billion dollars. I don’t believe this will be the end of Ant Group, it may be delayed and the company may not have such a big IPO, but I still believe this will be a great company in the future, as they’re addressable market is huge and they already have over 800million accounts. ANT IPO FORECAST
And if you do like Ant Group I think that PayPal is trading at a bargain price after the stock has dropped from the all time high of 215$ to 177$ PAYPAL CHART. That is a lot of room for growth with very good results being ignored by investors due to the lack of great guidance for next quarter, but I expect the company to have great success in the Fin-Tech industry which will continue to see a boom PayPal Earnings . They also announced that the use of cryptocurrency will expand to everyone in the US in the next weeks and plan to expand the offerings next year, which will attract even more users. PayPal Bitcoin
One other company that seems to be undervalued compared to the rest of the tech stocks seems to be google as investors didn’t buy the growth of this company as much as the others with Q2 revenue growth rate being negative, that was just an anomaly in my opinion as the company saw a 14% increase in growth revenue this quarter. Google STOCK
I believe this company has great growth potential in the cloud business as well as YouTube, so they dominate the search engine market and have a P/E of only 31. I see great room for growth for this company.
Good news for online retailers continues to come in as Wayfair crushed estimates yesterday with a huge beat , the company also saw a increase in revenues of over 60% year over year as the active customers also increase more than 50% year over year, the shares jumped a lot yesterday, erasing most of the loses from October Wayfair Earnings . This is great news for companies like Amazon and Shopify who saw the stock value drop despite beating earnings.
I greatly expect to see what Qualcomm announces today after the close, my biggest position Apple stand to gain a lot if the company announces great results as they are a big supplier for Apple Qualcomm preview. While I am also very interested to see what Buffets Berkshire did in Q3 Berkshire Preview. And also, we have to keep an eye on what Peloton will announce on Thursday as the stocks has dropped significantly in the last month.Peloton Preview
Also Walmart seems to be getting more in the action of streaming bussines as they look to expand the existing Roku partnership with the cable giant Comcast Walmart news
Thank you everyone for reading! Leave a comment down below with your opinion!
Have a great day and see you next time!
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