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Dear Trading God Friend, Â
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U.S. stocks followed their Chinese counterparts higher on Monday.
The Dow and broader U.S. stock market rallied sharply on Monday, as investors continued to look past a massive surge in COVID-19 cases around the world.
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All of Wall Street's major indices finished in positive territory, with the Dow Jones Industrial Average (DIA) rising 459.47 points, or 1.8%, to 26,286.83.
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The S&P 500 Index (SPY) climbed 1.6% to close at 3,179.67. Ten of 11 primary sectors finished higher, with consumer discretionary shares leading the pack. Information technology and communication services also outperformed the broader market.
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A strong performance in technology lifted the Nasdaq Composite Index (QQQ) to new all-time highs. The index rose 2.2% to close at 10,433.65.
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Despite the strong performance in stocks, the CBOE Volatility Index (VXX) edged slightly higher on Monday. The so-called "investor fear index" peaked at 28.33 on a scale of 1-100 where 20r represents the historical average. It would eventually settle up 0.8% at 27.89.
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U.S. equities followed their Chinese counterparts higher on Monday after the Shanghai Composite Index surged 5.7%. The broader CSI 300 Index also rallied 5.7%. Stocks in Japan and Europe finished higher across the board.
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In economic data, the U.S. services economy roared back to life in June, a sign that the worst of the coronavirus pandemic had passed. The Institute for Supply Management's non-manufacturing purchasing managers' index (PMI) improved to 61.6 in June from 41.9 the month before.
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The Final Word: America's economic revival could be in jeopardy as more states begin shutting down again over COVID-19. As of Monday, the United States had registered more than 2.9 million infections. Globally, more than 11.5 million cases have been reported.Â
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We'll talk soon, Â
Dan
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Dan The Trading God
You Could Make $300 to $1100 Per Contract With This Simple Trade
Imagine getting really good at mastering just ONE simple trade. A trade that appears like clockwork between 9:30-10:45am on most trading days. This free step-by-step guide, by options expert, Dave Acquino, shows you how to spot and take these trades so you can walk away with daily profits!
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