What Triggers a Bull Market?

We’re kicking off this week by examining which factors combine to push stocks higher after a big drop. (Hint: It has something to do with positive economic indicators and trader sentiment.)

While it may be premature to view these factors as an end to the bear market, we lay out a few scenarios that look promising…

Starting with the head-and-shoulders trend that the S&P has been showing for the past few weeks as an indicator of a bearish market, we don’t believe the market has bottomed out, despite the 20% decline that we saw last week that would qualify as a true bear market.

The truth is that markets don’t form a bottom when fundamentals are improving. Translation: Economic indicators like low unemployment and higher wages are combating the negativity.

As we do every week, we welcomed viewer questions about investing, specific stocks, and whatever else is on your mind when it comes to the stock market. Here are a few we addressed this week…

  • Is there any reason why financials (banks, etc.) have been doing well for the past few days?
  • You’ve indicated that consumer staples are a relative safe haven. Will they be again in the near term? Why have they dropped recently?
  • FAANG stocks like AAPL have been at support. Will that hold, and should I continue to buy AAPL?

Get the answers to these questions and more by watching the video above.

It’s important for traders to have as much information as possible in these volatile times. Get more insight into what’s happening in the market, including our tailored recommendations, with our trading research service Strategic Trader, where our goal is to give readers like you the best opportunities possible in any market condition. It doesn’t matter whether you’re trading options for the very first time or you’re looking for a new way to use options enhance your portfolio — we’ve got you covered. Details here.

Sincerely,

John and Wade

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