Stock Market Dow Quick Take

By: Nadeem_Walayat

My pre election forecast was for a relatively mild sideways trend into the end of the year awaiting a stream vaccine good news during January 2021.

However, the stream of vaccine good news has come a couple of months early and sent the Dow soaring to a new all time high of 30,000. My understanding of the process for the roll out of the vaccines is that they are unlikely to make much impact until Spring, so despite the covid relief rally, the virus will continue to ravage the US population and economy for several more months. A quick technical take suggests the Dow is likely to fill that Pfizer induced gap, so we could see the market trade down to around 28,500 as the market digests Covid vaccines reality though volatility is high.

(Charts courtesy of stockcharts.com)

What about the tech stock heavy Nasdaq?

We are seeing a deviation to the downside against the Dow which suggests to expect a deeper correction than what's in store for the Dow, to at least likely to fill the series of chart price gaps down to 11,250 which should offer an opportunity to accumulate into AI tech stocks that are trading at or near fair value.

AI Tech Stocks Buying Levels and Valuations for Q4 2020

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AI Stocks Portfolio Buying Levels Q4 2020 Analysis

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Nadeem Walayat

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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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