BROAD STOCK MARKET UPDATE (11:00 pm EST)
Although the epidemic spread of the coronavirus continues, some news today of a possible vaccine being developed seems to have tempered Wall Street's fears. This, along with President Trump's victorious impeachment acquittal, drove a strong rally in equities today. The DOW gained a whopping 483 points or 1.68%. The NASDAQ surged on today's opening bell, but then lost nearly half its gains and closed with only a 0.43% gain. (This was a minimal loss for those shorting the NASDAQ.) Because the acquittal news came at 4 PM, one could argue that there was no time for equities to "sell the news". That could, however, happen tomorrow - especially as the DOW was still under its all-time high (29,373) today which maintains our bearish divergence signal. We are still holding our short NASDAQ position, but will be forced to abandon it if the DOW can clear that high (that will be our stop loss now).
Although the epidemic spread of the coronavirus continues, some news today of a possible vaccine being developed seems to have tempered Wall Street's fears. This, along with President Trump's victorious impeachment acquittal, drove a strong rally in equities today. The DOW gained a whopping 483 points or 1.68%. The NASDAQ surged on today's opening bell, but then lost nearly half its gains and closed with only a 0.43% gain. (This was a minimal loss for those shorting the NASDAQ.) Because the acquittal news came at 4 PM, one could argue that there was no time for equities to "sell the news". That could, however, happen tomorrow - especially as the DOW was still under its all-time high (29,373) today which maintains our bearish divergence signal. We are still holding our short NASDAQ position, but will be forced to abandon it if the DOW can clear that high (that will be our stop loss now).
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