New Trade for June 24th 2020

Covid-19 cases and hospitalizations continue to rise in hotspot areas around the U.S. such as AZ, FL and TX.  The brunt of the Covid-19 earnings hit is expected to be in Q2 and we are currently standing at the gate of Q2 earnings announcements (companies have been slowly announcing for the past couple of weeks, next month the majority of announcements will come).  Despite reassurance from the president, many are questioning the status of the US/ China trade deal.  

There is a lack of clarity in regards to many important factors at play, yet markets have had an incredible run up over the past 3 months, mostly thanks to endless support from the Fed.  Yesterday Nasdaq posted its eighth straight day of gains, hitting a new intraday record high.  Big tech stocks like Amazon, Netflix and Apple each hit all time highs.  

If you’ve been trading with us, your portfolio has stacked on some nice gains.  Earlier this week  we mentioned in one of our trade alerts that it’s never a bad idea to keep some dry powder on hand, especially in this climate.  Since that post we’ve gotten a few email requests to clarify that statement.  

When we are speaking of “dry powder” we are indeed talking about cash on hand reserved for use when prime opportunity arises.  Futures are pointing to losses this morning, which could give way for some attractive entry prices.  As we move forward into the second half of 2020 we think there could be more opportunities to add to your portfolio. Cash on hand will give you the freedom and ease to move into new investments or add to a favored position if the price drops significantly.