Why it is Important to Take Part in the Stock Market Rally
The stock market rally closed a little changed on Tuesday after trading in a narrow range. Following back-to-back S&P 500 gains of over 1% to record highs and the Nasdaq gaining more than 1.5% for three consecutive sessions in clear key levels, with several strong breakouts as well as a quiet session. Moreover, a stock market rally pause for a couple of days would let more handles form on bases. At the same time, recent breakouts could consolidate gains.
As long as the Nasdaq is able to remain above recent highs and especially the 50-day line, then the bullish trend would remain intact.
Stock market rally leadership stays fairly broad-based, with some tech giants, chip, commodity, industrial travel as well as some retail names doing well. Certain highly valued growth names such as 10X Genomics or Square stock are shaping up. However, more are like Tesla but at least early repairs are underway. There is no guarantee that the next chapter for famous stocks will be a positive one.
Investors should take part in the stock market rally. People should not expect anything similar to the April-September run, but there are reasons to be confident now. As investors expand their holdings and revise their watchlists, it is desirable to diversify their stocks. That decision will help them to avoid big portfolio moves from group sell-offs. Moreover, they will keep in touch with the market as well as leading stocks.
Stock market and the coronavirus pandemic
The Royal Caribbean, Carnival, as well as the Norwegian Cruise Line, strengthened their position on Tuesday. The once-thriving industry suffered tremendous losses due to the coronavirus pandemic. Hopefully, the Centers for Disease Control and Prevention recommended that cruises could resume this summer. Nonetheless, companies will have to enforce certain restrictions.
Carnival, Norwegian Cruise Line, and Royal Caribbean stock rose 2%-3% overnight, adding to gains on Tuesday and over the past several sessions. All of them are approaching possible buy points.
Tesla also strengthened its position on Tuesday, as its stock added 0.1% to 691.92. One day before, the TSLA stock gained 4.4% to 691.05 following record delivery figures. However, that was near session after reaching 708.16 intraday, encountering resistance at its 10-week moving average. In the case of Tesla stock, it is also necessary to get above its March short-term highs and its 50-day line before investors should pay more attention to the huge 2020 winner.
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