Today shares of Amazon (NASDAQ: AMZN) are up over 5% to trade at a new 52-week high. The stock market as a whole has not been doing well over the past few weeks with the DOW and S&P 500 remaining well below their 200-day moving averages. Much of the US economy is now shut down, but traders are buying Amazon stock as a stay at home stock play. On Tuesday a Bank of America analyst put a buy on the stock as part of a “unprecedented demand shift.” As you can see the stock is soaring.
And shares of Netflix (NASDAQ: NFLX) also have jumped up to attract many traders too. People are spending over eight hours a day stuck at home streaming shows in the United States. Last year NFLX was a bad laggard stock, but that is not the situation now.
There are many ways to trade the markets. Some like to buy into a few high flyers, even though that comes with risks as they can often dump when they stall out. Others like to play into “L” type stock trading patterns looking for the bargains.
Personally I am most interesting in buying the top stocks in the best performing sectors. Right now gold is beating the stock market just as NFLX and AMZN are doing. There are big reasons for the gains in the gold market now. I talked about them in this video update.
-Mike
