All major broad equity indices traded higher yesterday after shaking off an early start that ignored the so-called V-Day in the United Kingdom that saw the first patient receive the Covid-19 vaccine. It was a moving scene to watch a ninety-year-old woman step up to the plate.
Ironically, the market slumped at the start of trading, but there is a strong upward bias and tremendous pressure on fence-sitters to keep waiting for the “perfect moment.” Meanwhile, it looks like Americans are warming up to the notion of taking a Covid-19 vaccine.
According to Gallup, 63% of Americans express a willingness to receive a vaccination. Yesterday as President Trump talked about the vaccine and distribution partners from Walgreens and CVS to FedEx, UPS, and the McKesson Corporation, the market picked up a gush of wind in its sails.
The S&P 500 was up 8 points when Trump stepped up to the podium. However, it was up 16 points by the time he sat down to sign the executive order granting distributions for ‘Americans First’. I suspect as new vaccines come on that are less delicate to handle, we will be able to get them at the nearest pharmacy as the level of acceptance increases.
To see the chart, click here.
Message of the Market
Market Breadth | NYSE | NASDAQ |
Advancing | 1,972 | 2,354 |
Declining | 1,171 | 1,307 |
52 Week High | 245 | 392 |
52 Week Low | 3 | 13 |
Up Volume | 2.45B | 2.87B |
Down Volume | 1.43B | 1.43B |
Market breadth was strong on the NYSE and the NASDAQ, but the story is the latter. The NASDAQ Composite is up 40.2% for 2020 and looks like a locomotive. Consider the fact there were more losers than winners on the NASDAQ on October 2nd (571 to 488), and now there are 635 winners against 367 losers.
NASDAQ Winners
| Nasdaq Losers
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One thing to consider about pullbacks – they become wilder the more extended any stock or index becomes. Keep an eye on the 50-day average as a potential support point.
Portfolio Approach
We are adding to Materials this morning in our Hotline Model Portfolio.
Today’s Session
Door Dash makes its debut as a publicly traded company today amid an enormous buzz. A week ago, shares were priced in the range of $75 to $85. As of last night, it expects to begin trading at $102.00. The Renaissance Initial Public Offering (IPO) exchange-traded fund (ETF) is up more than 100% this year, but it has taken off since the March 23rd low.
It's off to the races this morning as the Dow and the S&P500 hit new highs.
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