We have finally come to one of the most anticipated and what will likely be one of the most entertaining events of 2020, the Presidential debate between candidate Joe Biden and the incumbent President Donald Trump. Grab your popcorn because if nothing else, this debate is going to be entertaining to watch. Tune in at 9 P.M. ET.
The markets are getting pre-debate jitters today, letting go of some of yesterday’s gains, and leaving room for market action tomorrow. Almost every sector traded lower today, with the exception of communication services.
The fear index, aka the VIX, is elevated back up off August’s lull. Investors and traders are back at the edge of their seats in anticipation of what changes this election may bring to the equity markets. Still, the trend in market fear remains downward sloping from its peak in March.
Recent Stock Activity
The S&P 500 bounced hard off the 3,200 resistance-level, a level we haven’t seen since July, surging roughly 5% from the lows last Thursday to the 50-day moving average (3,360) this morning, which has become a new resistance level. Today we broke down off this resistance.
The S&P 500 remains over 7% off its highs in early September, heading back down towards correction territory (10% or more off recent highs).
Tech Tech Tech
Tech has been the market driver in 2020, a year that will become synonymous with change. Apple (
MSFT has tracked the Nasdaq 100 quiet closely, yet still outperforming at 30%+ growth in 2020, while yielding an over 1% dividend. I am a big advocate of Microsoft, an enterprise that continues to stay ahead of the innovative curve for decades on end. The brainchild of esteemed Bill Gates remains the world’s software king with its enormously successful shift to cloud-computing.
MSFT is a stock that I believe every portfolio needs exposure to. This business is undoubtedly going to remain a cloud-computing leader through the roaring 20s.
As far as its technicals go, MSFT is in the same boat as most of the market: sitting right below its 50-day moving average. I personally don’t mind the stock price today but will likely wait to add to my position until it breaks through the $200 level again.
This debate will likely focus on the coronavirus, civil unrest, and economic disparities during this unprecedented global pandemic. I hope we can get some market-moving action from this, and I hope it is to the downside. The more the market drops, the riper buying opportunities become.
I will be keeping my eye on my market levels, the tech giants I discussed above, as well as a wish list of stock I have authored. Look out for my stock pick wish list in a subsequent article.
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