Yesterday marked an important day in the market – stocks finally turned positive for 2020.
Back in March, when stocks were crashing and circuit breakers were hit, many investors struggled to see this day through the money-draining mania.
But yesterday, we were there…
Until we weren’t.
By closing bell, the S&P and the Nasdaq had turned negative. The Dow was up a mere 22 points. And once again, we were reminded of just how unpredictable the market can be.
That’s why I wanted to share an exclusive video from my Youtube account, Tom’s Trading Room, with you today.
I kicked the week off with this video yesterday. You see, with the markets moving this fast, it’s important to take a step back. Because the only indication we have of the future is the past – as a pattern trader, I know that first hand.
And some of the biggest market moves come from the FAANGs – Facebook, Apple, Amazon, Netflix, and Google.
The Fourth of July may be over – but the profit potential that the holiday brings is just getting started.
See, today I want to tell you about one of the most lucrative patterns the market has to offer…
The holiday pattern.
I follow 10 holidays throughout the year that close the market for trading. And I’ve found that buying a stock or exchange-traded fund (ETF) before a holiday and selling it after is a proven strategy when it comes to playing this pattern.
And Independence Day brings one of the most accurate patterns of the year.
But in order to discover the best time to buy and sell, we need to look at backtested results.
The coronavirus has left 13.3% of people in the U.S. without jobs. Retail spending is down about 8% compared to pre-pandemic times. Earnings from big-name companies like Nike and Costco have missed already-low expectations.
Yet, in the face of these stats, the stock market has been rising.
Since its March low, the Dow Jones and S&P have risen about 37%. The Nasdaq is at an all-time high, up 45%.
The V-shaped bounce off of these lows has been completely unprecedented. But stocks aren’t the only asset investors are flocking to…
On Monday, pending home sales for May were released. Coming in at a whopping 44.3% spike, the number overtook the 15% expectation, making for the largest one-month jump in history.
In the face of low economic numbers, real estate, just like stocks, is surging. Realtor.com reports that over the course of 2020, inventory has declined by 15.7%, all while average listing prices rose 3.8% – both indications of a market in high-demand.
But you don’t have to buy property to invest in the real estate sector. (Check out these tiny currencies – they’re changing the industry as we know it.)
Only four months ago, social distancing were two words we’d never heard of. Now, those 16 letters just about run our lives.
The new status quo isn’t just keeping us from going to concerts or visiting Grandma – it’s affecting everything, right down to the way we shop.
Personally, I always dreaded going to the grocery store. And once the pandemic hit, and shelves were nearly empty? Forget about it!
I’m not the only one either. Many are choosing to stay home and shop online – and one industry is absolutely booming as a result.
While overall U.S. retail sales plummeted as a result of the coronavirus, falling 16% in a single month for a record drop, ecommerce sales are expected to rise 18% in 2020, according to a recent forecast by eMarketer.
Since lockdown restrictions were relaxed, coronavirus cases have dramatically spiked around the world. Seven U.S. states, in fact, just reported their highest coronavirus hospitalizations since the pandemic began. And the CDC warns that this number will skyrocket once the summer is over.
The ecommerce industry is on fire, and it’s only going to get hotter.