NASDAQ Grinds Higher To Open The Week

U.S. stocks are higher to open the week, led by a fresh test of all-time highs by the NASDAQ Composite. A little over halfway through the Monday session, the DJIA DOW (+230), S&P 500 SPX (+13), and NASDAQ (+30) are all in the green. At this point, it appears that last Friday’s blockbuster employment report is carrying a great deal of weight.

Today’s economic calendar is relatively vacant, but there were a few U.S. Treasuries Auctions held. Here’s a look at the results:

Event                                                 Actual               Projected           Previous

3-Month T-Bill Auction                     0.17%                     NA                     0.15%     

6-Month T-Bill Auction                     0.185%                   NA                    0.170%

Yields are up on short-term U.S. government debt, suggesting that investors are more interested in risk assets. Going into the summer months, it looks like the mid-February bull market in stocks is back.

The story of the day continues to be optimism surrounding the COVID-19 reopening. Aerospace giant Boeing (BA) has gained around 11% today, taking valuations above the $225 per share level. In addition, embattled Hertz Global Holdings Inc. (HTZ) stock is up more than 400% in the past three sessions. Both of these companies are closely tied to the air travel industry, which was decimated by the COVID-19 shutdown. Add it all up ― institutional investors are betting that the worst is over and risk assets are poised for a summertime rally toward historic highs.

The NASDAQ composite has been a frontrunner throughout the coronavirus pandemic. Let’s dig into the technicals and chart the recovery.

NASDAQ Posts Fresh All-Time Highs

For months, analysts have debated the technical form of a post-coronavirus rally. If the weekly chart for June E-mini NASDAQ futures is any indication, the argument is over. The U.S. indices have posted the rare “V-shaped” recovery.

Overview: Right now, it’s time to adjust our key numbers upward. 30,000 in the DOW, 10,000 in the NASDAQ, and 4,000 in the S&P 500 are now on the horizon. How is this possible? A combination of low-interest loans, government stimulus, and cheap energy have made short-term corporate growth all-but-assured. Anything is possible, but from now until October, “buying the dip” is going to be a popular stock trading strategy.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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