The tremendous August market performance looks to finish strong this morning with 3-new companies trading on the Dow as well as new shares from the stock split in AAPL and TSLA.  Coming as the biggest August rally since 1986, the question is, can the bullishness continue with a 3-day weekend on the horizon.  Stay focused, be careful not to over-trade and extended market and remember bears still exist even though we’ve not seen them for quite a long time.

Asian markets closed mixed but mostly lower overnight, but European markets trade higher this morning inspired by the very dovish Fed.  US Futures point to modest gains at the open but could easily add fresh new records as the bulls continue to ride the wave of governmental stimulus.

Economic Calendar

Earnings Calendar

On the last day of August 2020, we have 12 companies repoing quarterly results.  Notable reports include SCSC, BAM & ZM.

News & Technical’s

On our last day of August, we have three new companies trading on Dow with APPL and TSLA trading with new shares after splitting their stocks.  Historically August is not a great month for the markets, but this year August will end with its most robust performance since 1986 amid unprecedented governmental intervention.  The magnitude of the market recovery is nothing short of remarkable considering the national GDP is a negative 31 with 1 in 3 Americans unemployed.  According to reports, the FDA is ready to fast track coronavirus vaccine ahead of phase three trials breaking with its typical protocols.  Yesterday, India set a new world record, reporting more than 73,000 new infections in a single day.  The violent protests in Portland, Oregon, that have gone on for 3-months turned deadly this weekend with a shooting.  Killing each other over political ideology is nothing new, but it’s a shame how divided and weaker we are as a nation as a result. 

With bullish and fresh new records on Friday, the Futures point to bullish open.  Although the index appears stretched, there is at this time no price action clues of bearishness beginning.  However, with a 3-day weekend on the horizon, a declining Absolute Breadth Index, as well as a stubbornly elevated VIX,  traders should not become complacent.  Bears still exist and could attack at any time, so stay focused and flexible. 

Trade Wisely,

Doug