DailyPlay Update – Market Double Top – Aug 20th, 2020
S&P 500 Market Outlook: Bullish
Market Overview: The S&P 500 tested its all-time highs intraday but pulled back from a breakout at the close. Our base case remains that the market will push to new highs as the Federal Reserve reiterates its commitments to support markets with further stimulus. Investors continue to see fiscal and monetary policy as providing downside protection and are taking on excessive risks. Utilize options in this type of environment to reduce your downside risks, as overbought and negative divergences in the markets will lead to violent pullbacks.
DailyPlay Update: As we digest an important earnings season, we are taking a pause from adding exposure to our portfolio and managing our existing positions.