Markets Stay Focused On Reopening Economy
Keith Schneider | May 10, 2020 04:31AM ET
Equity markets shrugged off Mr.Buffet's recent dumping of his airline stocks and reversed what looked like a serious selloff in the making.
Oil and energy bounced off very depressed prices ignoring the weakness in the airlines and markets stayed focused on a gradual reopening of the economy.
Small Caps continued their recent strength on good volume.
So did lumber, which could be an early inflationary indicator.
Despite the airline industry’s weakness as measured by the U.S. Global Jets ETF (NYSE:JETS)….
One company performed well and that was Virgin Galactic Holdings (NYSE:SPCE).
If you are not familiar with Richard Branson's latest brainchild, it is all about space travel.
The conclusion from this is that getting off the planet is a good investment, staying grounded on planet earth…. not so much.
- Risk Gauges are 100% bullish as all key indexes regained their 10 DMA's
- Grandpa Russell (IWM) closed +5.8% for the week on great volume
- Risk-off sectors such as Utilities (XLU) and Consumer Staples (XLP) underperformed yet again
- Consumer Discretionary, a risk-on sector performed well
- The Energy sector rallied supported by the lockdown being lifted, and even Solar stocks (TAN) showed some interest
- Gold and Bonds, both Risk-off plays took a breather, digesting large gains this year
- VXX (Volatility) has fallen back to more reasonable levels, a bullish development if it can stay at current levels or drop further
- Soft Commodities (DBA) continue its bottoming process
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.