After a Super-Strong April, Could Stocks Correct in May?

Excerpt from Louis Navellier's Marketmail - 05/12/2020

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The S&P 500 rose 3.5% last week and NASDAQ is on fire – up 6% last week and now positive for this virus-tainted calendar year. The Dow rose 2.6% last week, rising in four of five days, falling Wednesday. 

For more details, here are the links to my Tuesday, Thursday, and Friday podcasts last week. 

Tuesday, May 5 (+123.24 Dow points): The market rose on low volume, despite terrible economic news.

Thursday, May 7 (+221.25): Stocks “gapped up” and Treasury yields declined – a powerful combination.

Friday, May 8 (+455.43): The market “melted up” after global markets rose after their economies opened.

I hope you didn’t “sell in May and go away.” May is actually a good seasonal month, and June is even better. This May could be better than average as investors have more time to fund pensions for 2019 taxes, not due until mid-July. The global economy is opening up and the U.S. economy could open up soon.

In my column this week, I’ll uncover some hopeful signs in Friday’s dismal jobs report. Bryan Perry will cover the new work-at-home paradigm, which can boost productivity. Gary Alexander examines America’s unprecedented cash hoard and where we may spend it. Ivan Martchev argues that this “V” shaped stock market recovery is different than the last one, since a rapid earnings or economic recovery may not follow. Jason Bodner sees the market deep in overbought territory now. What does that imply?


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