Some people will say that COVID-19 is a complicated situation that changes on a weekly basis, hence the confusion. Others will say this whole mess is about politics and has nothing to do with science. Others will say it’s a mix of the two. How to Navigate the Confusion For investors, given the potential impact of another round of shutdowns on the market, the wisest move is to ignore all the news and focus on price levels. Put another way, don’t try to be psychic… let the market show you what’s going on. I’ve illustrated the major lines of support for the S&P 500 with green lines in the chart below. They are currently 4380 and 4265. We also have minor support at 4,370 (the blue line). The key with bull markets is to ride them for as long as possible. Put another way, until the market starts to “do something wrong,” by breaking down and taking out support, you need to fight the urge to sell. Best Regards, Graham Summers Editor, Money & Crisis |
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