Nasdaq

Weekly game plan 11 October 2020

Every week in 2020 seems to get stranger and stranger. Last week we saw the death and rebirth of stimulus talks and Trump uses his ‘art of the deal’ tactics to look good for the election. Make no mistake, the election is a big deal and it’s coming closer. Odds are that volatility will pick up a little heading into the election and thus we’re happy to take it very slowly. That said, markets are looking generally strong and confident at the moment.

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Weekly game plan 27 September 2020

Things are starting to get a little wild out there as we approach the U.S. elections. Most of the charts that we look at this week are or larger market indices. Volatility is likely to remain elevated for the rest of the year. We’re not quite ready to start buying the dip just yet, nor are we sure that we’ve even really seen the dip yet. A bit of a zoomed-out macro view this week.

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U.S. commentary

So, in the depths of the COVID gloom there was talk of a depression and stocks dropping another 50% from the lows. There was absolute conviction that you should not be buying. Now, after one of the most insane V-shaped recoveries we have ever seen, most analysts tell you to buy Apple, Tesla and anything tech-related as we have entered a new type of world. And yes, a V-shaped recovery… as most analysts say it isn’t happening, but it’s a clear V – as you see in the chart of the Nasdaq. Anyway, the consensus has swung from “don’t buy” when it was low to “buy everything” here and now? We disagree. We think it’s time to go risk-off.

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