We start this week by looking at what factors combine to push stocks higher after a steep decline. (Hint: It has something to do with positive economic indicators and trader sentiment.)
While it may be premature to view these factors as the end of the bear market, we lay out a few scenarios that look promising…
Starting with the head and shoulders trend the S&P has been showing for the past few weeks as an indicator of a bear market, we don’t think the market has bottomed out, despite the 20% drop we saw last week. would be considered a true bear market.
The truth is that markets don’t bottom out when fundamentals improve. Translation: Economic indicators like low unemployment and higher wages combat negativity.
As we do every week, we’ve welcomed questions from viewers about investing, specific stocks, and anything else you’re concerned about in the stock market. Here are a few we covered this week…
- Is there a reason why financials (banks, etc.) are doing well these past few days?
- You mentioned that consumer staples are a relatively safe haven. Will they be again in the short term? Why have they fallen recently?
- FAANG stocks like AAPL were in support. Will this hold, and should I continue to buy AAPL?
Get the answers to these questions and more by watching the video above.
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John and Wade
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