The market doesn’t need specific and confirmed moves to bounce. It only needs a glimmer of what is possible. Yesterday’s rally was based only on the hope of a stimulus package being passed by Congress. It wasn’t actually done. Yet the largest rally in decades occurred , an almost 11% jump. This is ominous as it could easily reverse and crush the market even worse than before. I learned a valuable insight on Bear markets: Bear markets don’t end with optimism , they end in despair! I believe that the market will turn down once again yet it might be a slow steady grind instead of the leaps we have been seeing.
BABA - Alibaba 400 @ 177.40 JD - JD.com 292 @ 30.90 WMT - Walmart 1000 @ 119.45 Rationale: BABA had been showing very positive growth over the week as Washington and Beijing Seemed to have calmed the “trade war” and their were talks of eliminating the final tarriffs imposed by Trump . BABA has an earnings report coming up on November 1st that it is expected to easily beat. Resistance seems to be at around 178. The Yuan has shown a slight increase in value which should assist in the value of BABA and other Chinese assets as well. JD usually works in sympathy with Chinese stocks and showed a great rally at the beginning of the week. Resistance point is at about 31.75. WMT has shown a good growth pattern dating back to Approximately August 21,2019. Resistance point not detected. WMT should also grow with the lessening restrictions on China.
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