Home Precious Metals Prices Stock Market Rally Loses Steam Now What? – Mike Swanson (04/08/2020)

Stock Market Rally Loses Steam Now What? – Mike Swanson (04/08/2020)

Yesterday we saw what amounted to key reversal days in the S&P 500, Nasdaq, and DOW. This happens when a market has a sharp rally or bounce into resistance and then has a day in which it gaps up big only to finish in the red. As you can see from this chart of the S&P 500 this happened yesterday with the US stock market.

The stock market is still way below its 150 and 200-day moving averages and just put on a key reversal. The market rally has lost steam, but that does not mean it is going to go straight back down to the lows right now.

The action is consistent with what I wrote in my Sunday Power Investor update. In that update I talked about where and when I thought the market would roll over and my views have not changed on that.

I see no reason to rush out and try to buy SPY right now or chase past favorite stocks like NVDA or AAPL. What is the thing to do is get into gold and mining stocks as they are both still above their 200-day moving averages and precious metals are now outperforming the US stock market averages.

Generally speaking to beat the market you want to be in the sectors that are beating the market and the best stocks in that sector. This is why I am making Aftermath Silver my top stock pick for April.