The Bull Is Back, And All-Time Highs May Not Be Far Behind

Stocks rose by over 4.2% to finish the day at 3,130. The rally was impressive, with the market shaking off pretty much every coronavirus headline today as if they never even crossed the tape. So, either the virus risks have been priced into the market, or the virus was nearly the narrative used to explain the sell-off. 

Overall, the market seemed very strong today, with a new uptrend forming, creating a series of rising triangles throughout the day, taking out resistance level after resistance level. I noted the first level during the midday update, and the rest was history. 

S&P 500 (SPY

Anyway, is the coast clear? It feels like we are getting closer. You can see on the chart; the S&P 500 cleared a downtrend that formed from the start of the sell-off, and how we have now broken it. If somehow we manage to rally beyond 3,185, it would suggest there is a good chance a fill up to 3,330. 

I know you think I’m crazy, but did you see all the coronavirus headlines the market blew through today, from LA to NY. It was if they didn’t exist. Clearly, the “panic” the market was in last week, is not the case, most certainly not today. 

S&P 500, spx

VIX 

The VIX is sitting right on support at 30, and a break of support at 30, sends the VIX down to 26, and well, would suggest fear levels are retreating.

vix

Skyworks (SWKS

Skyworks preannounced today, and as I noted on the morning call, it was in pretty much in line with Qorvo, with a roughly 5% reduction in revenue guidance. The company pointed out in the press release; the miss which was due to the demand environment, which due to the interruption in the supply chain, basically because of Apple. How a roughly $40 million shortfall in revenue for one quarter turns into a $3 billion drop in market cap is beyond me. Anyway, the stock appears to have support around $100, and I think it starts working back to around $112. 

skyworks, swks

Apple (AAPL)

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Disclosure: Michael Kramer And The Clients Of Mott Capital Own SWKS, AAPL, ACAD, SPLK, V.

Disclaimer: This article is my opinion and expresses my views. Those views can change at a ...

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