Finally, after several strange trading sessions, the market managed to open up for a gain this morning and to close higher in the afternoon. This is the first green candlestick for the S&P 500 since Monday and a potential signal that the rally will continue.
Or, it’s the last bullish panting before a correction.
The actions could easily go both ways, several reopenings are expected to take place next week.
Apple (NASDAQ: AAPL) is one of the first to do so, which has already started serving customers in select locations in South Korea, Australia and Germany.
“We are delighted to begin reopening stores in the United States next week, starting with some stores in Idaho, South Carolina, Alabama and Alaska,” said an Apple representative in a statement.
“Our team is constantly monitoring local health data and government advice, and as soon as we can safely open our stores, we will.”
In these states, Apple has only six locations. The company has a total of 271 stores in the United States by comparison.
So even if they don’t significantly increase Apple’s bottom line, the reopenings are still a symbolic victory. Using temperature controls, social distancing techniques and face covers, Apple is confident that its stores will be safe for customers and employees.
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“Our new social distance protocol allows a limited number of visitors to the store at the same time, so there may be a delay for walk-in customers. Where possible, we recommend that customers shop online for contactless delivery or store pickup, “said the iPhone maker.
It’s enough to spark investor interest in other companies. The jobs report for April, which lost $ 20.5 million in wages last month, did little to deter the bulls from buying this morning.
If the economy is about to reopen, why worry about last month’s jobless claims?
For JJ Kinahan, chief market strategist at TD Ameritrade, some caution may still be required.
“There is this feeling of” OK, we’re going to go back to work and things will get better. “But how quickly will they improve and will it be sustainable?” asked Kinahan.
If stocks are going to “do this thing” and keep going up, it means that short-term traders need to prepare to go long.
Fortunately, many stocks seem ready to jump. The one who, however, could be a top performer next week.
Boston Scientific Corp. (NYSE: BSX) has already had an excellent post-crash journey. The stock peaked in April and has since sold slightly, but now is nearing another major breakout.
BSX climbed today, surpassing its minor bearish trend (represented by the yellow trendline) and the 10-day moving average. Three higher troughs were also set, suggesting that BSX maintains significant upward momentum.
If the BSX is higher than the day’s high, it might make sense to go long on the market with a trade trigger of $ 38.66.
Everything could happen next week with COVID-19 and the American economy. We are only one title away (good or bad) from the next change of sentiment.
If it moves higher, BSX could provide short-term traders a way to grab quick wins.