INVESTORS: DON’T BE FOOLED BY THE BUYING IN THE STOCK MARKET DUE TO DUBIOUS OIL SURGE $DIA $DJIA $AAPL $MU $USO $AMD $MSFT
At this time when coronavirus cases have topped one million worldwide, investors are trying to figure out what is next for the stock market. This analysis just became more complicated due to huge moves in crude oil that should be considered dubious. given that demand for crude has fallen off the cliff due to coronavirus shut downs. There is a strong correlation between crude oil and the stock market. If that was not enough, there are anomalies in the jobs report.
Under these circumstances, it is important for investors to figure out what really matters and what does not. Given that dubious oil rally and anomalies in the jobs report, stock-market rallies should be used to raise more cash based on the protection band criteria (more later in this article), and rallies should be used to build protection for long-term portfolios.