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Morning Commentary

HAVE THE SUMMER DOLDRUMS ARRIVED?

By Charles Payne, CEO & Principal Analyst
7/6/2020 9:40 AM

Thursday’s session seems so long ago, and I am not sure it was just because we had a three-day break from trading. In this 24-7 cable news cycle, headlines change (but in so many ways, remain the same) every day. There has been a lot to ruminate on, although I hope most people just chilled and celebrated July 4th with as many family and friends as they could.

All major indices closed higher on Thursday and for the week. The financial media was trying to turn a positive session into a negative because stocks pulled back from session highs. I was happy to see as many plus signs as we did, considering all the things that could have gone wrong over an extended weekend.

Most investors checked out midway through the session, as all the major indices traded significantly less than the average daily volume.

Index

Thursday’s Volume

Daily Average

S&P 500

2.3 billion

5.7 billion

Dow Jones Industrial Average

350 million

430 million

NASDAQ Composite

3.7 billion

4.3 billion

 

Volume has been light for some time, but there is no doubt would-be buyers moved in quickly last week.  The question is: could we see summer doldrums?  The market has been calmer, although each session feels like a coin toss, even when we see big gains or losses out of the gate. The market breadth was decidedly bullish; the new highs to lows, particularly on the NASDAQ, underscored the popular trend of chasing winners.

Market Breadth

NYSE

NASDAQ

Advancing

1,855

1,864

Declining

1,103

1,454

52 Week High

91

176

52 Week Low

3

11

Advancing

2.90B

2.38B

Declining

1.25B

1.57B

 

Earnings season is around the corner, so each day, we’ll study results and continue to watch for states’ reactions to increased coronavirus cases, hoping that death rates do not climb as rapidly as new cases.

Portfolio Approach

Today’s Session

The markets in rally mode.  Gap openings have a tendency to pullback. Let's see what investors do. 


Comments
I asked an ICU worker in a big northern Phoenix hospital
what % of ICU patients, listed as Covid 19 patients,
really had the Covid 19? Answer: About 2/3rd's.
1/3rd idn't actually have Covid 19.

Donald McArthur on 7/6/2020 12:41:31 PM
 

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