Watch this ETF to spot if a stimulus deal will bring a ‘short-lived’ stock market bounce or a sustained rally, strategist says

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One strategist said that any near-term bounce from a new fiscal plan would be “short-lived.” Why? 'The market is still quite overvalued and the combination of the weakening employment picture plus a second wave of the virus does not bode well.'

President Donald Trump’s health also remains in focus as seemingly encouraging updates have also calmed the markets. With the election less than a month away, public opinion polls have swung further in favor of former Vice President Joe Biden. The heightened prospect of a non-contested outcome has also buoyed investors.

Maley said Trump’s positive COVID-19 test improved the chances of a new stimulus boost, as it gave both sides the opportunity to concede ground without losing face.“We believe an agreement on a new fiscal plan is likely, but we’re not so sure it will help the stock market rally in a sustainable way.

But the strategist said Miller Tabak & Co one important indicator — chip stocks — would signal whether they were wrong. “The chip stocks have been a very important leadership group for the broad stock market, so it’s action over the coming days and weeks should be vitally important.” The buzz Trump left Walter Reed Medical Center on Sunday evening to drive by supporters in a motorcade, before returning to hospital where he is being treated for COVID-19.

 

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More than likely all the Robin Hood investors will be left holding the bags once again. Time to buy Hertz again?

It's only higher than 1929 - before a blood-curdling plummet. In the history of Earth, it was briefly higher in late 1999 through early 2000 - before a blood-curdling plummet. Pension funds are leveraging up, which they only do at the top to achieve maximum destruction.

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