The Dow Has Completely Recovered Its 2020 Bear-Market Loss. Here's What Comes Next

[Option Beast]( 11/21/2020   |   [View in browser]( --------------------------------------------------------------- [The Dow Has Completely Recovered Its 2020 Bear-Market Loss. Here's What Comes Next]( By completely erasing its February-March 2020 losses, the bull market appears to have secured a renewed lease on life. But it may be just a short-term lease. I'm referring to what the Dow Jones Industrial Average did this week: close above its previous high from earlier this year, thereby completely recovering its February-March bear-market losses. While other major market averages had already completed their own recoveries in the summer, the Dow - the bluest of blue-chip averages - had stubbornly refused. Until now. Some of the analysts I follow are making a big deal of this, arguing that the market after reaching this point usually continues for much longer and rises much further. I decided to put their argument to the test. [More...]( SPONSORED CONTENT [Can Your Nest Egg Survive A 89% Market Crash?]( The stock market crashed 89% back in 1929... and it can happen again. But options give you the potential to go after profit even when the market crashes. Getting started is simple. Click here get your absolutely FREE options trading guide for more details. [REFLECTIONS.... Gaining Traction by David Sager](#) America rarely has been so politically divided, and the stock market has rarely been happier. Despite being a contentious and contested election, the Dow Jones Industrial Average is within striking distance of passing 30,000. If that milestone is achieved, it would 'show the world' that America's economy is still one of the most powerful in the world even if our politicians are acting like political science dropouts. This elevated volatility can be a powerful tool for investors to literally decipher the market in the aftermath of our 'quirky' presidential election. Fortunately our founding fathers instituted a great set of checks and balances to insure against such zany political maneuvering. Even with all the complaining about the electoral college, it's intent ensures a balanced representation from each state. Like or not, it works. The vaccine results announced on Monday (11-9-2020) by Pfizer Pharmaceuticals this past week are the best hope yet that the pandemic might be in sight. That vaccine and possibly others could receive emergency use authorization within a couple of months, and much of America could receive the 'needle' in the next 2 to 6 month. Hopefully life 'could ' begin to look normal by Thanksgiving 2021. Another handful of vaccine and treatment makers, (Moderna, Johnson & Johnson, AstraZeneca, Gilead Sciences, are a few of the leaders) some of which are within 30 days of active testing. "If there's silver lining in the fact that our country is currently on fire with this virus, it's that these trials can reach a conclusion much quicker than otherwise," said Dr. Paul Offit, professor at the University of Pennsylvania and a member of the F.D.A."s vaccine advisory panel, and he said that the news that Pfizer's trial was progressing quickly was a good sign for other trials. The vaccine showed an extraordinary 90% effectiveness, (the measles vaccine is 93% effective, while the flu influenza vaccine is around 50%). Many predicted that the first vaccines out of the gate would not be that efficient, however the news was very good, propelling the markets in a frenzied fashion to record highs. The Dow Jones industrial Average responded very positive, soaring to a near record 29,479, up 4.1%, while the S&P 500 gained 2.2% to 3585 an all time high, and the usual tech heavy Nasdaq was rather quiet, falling .0.6% to 11,829 the leader was rather quiet. This was the first week since March 2000 that the Dow finished up more than 4% and the Nasdaq finished negative. A portfolio that was long the market's cheapest stocks and short the most expensive ones would have returned 6.4%$ that day, the "most extreme" one-day gain since at least the mid-1980's, according to J.P. Morgan data. Interestingly, "the market doesn't need tech to hit a new record," says Ben Levisohn of Barron's. 11-16-2020. President elect Joe Biden, who has said he plans to make a priority of passing a law against domestic terrorism, also has been urged to create a White House post overseeing the fight aganst ideologically inspired violent extremeisms and increase funding to combat them, according to his team of advisors. Federal law defines domestic terrorism as 'dangerous and illegal acts intended to coerce a population or influence the government.' Presently there are no Federal terrorism laws "that apply to make the most common method of committing a terrorist attack--a mass shooting--where there is no tie to a foreign terrorist organization," says Mary McCord, a former federal prosecutor who works at GeorgeTown Law Center. RUMBLINGS ON THE STREET Mary Barra, CEO General Motors, Barron's "We think there's a huge opportunity to grow EV demand (electric vehicles), and that's why we're accelerating our business," the General Motors CEO told a Barron's tech conference this past week. Making EV's for multiple price points, a strategy reminiscent of legendary GM Chairman Alfred Sloan, is key to EV growth, she said. "We need to have vehicles not only at the top end....but also attainable for everyone." And, she added, GM needs EV's to break out of it's heartland base, and pick up share on the coasts. EV's must be as good as, or better than, gas powered vehicles, she said. We need to make sure we're providing a vehicle for them, and an ownership experience, where there's no compromise and it's all upside." Albert Bourla, CEO, Pfizer, on the company's Covid 19 vaccine, Barron's "I think we can see light at the end of the tunnel." Bill Hench, manager Royce Opportunity value fund, Barron's With small caps this cheap, "if you're wrong and they don't work... it's like jumping out of a first floor window." Robert Lovelace, Co-manager American Funds New Perspective, Barron's Lovelace points out that large publicly traded companies aren't the ones being hit hard by Covid 19, it's the smaller mom and pop enterprises that couldn't adjust their models quickly enough. "The larger listed companies have tended to do well during this," he says. "Companies earnings are already beginning to recover, if they are not fully recovered, and some are still growing quite strongly, especially those with the digital footprint." [We Need To Build More Homes: Prices Soar Amid Housing Shortage]( There are fewer homes for sale in the U.S. today than ever recorded in data going back nearly 40 years. That's a big part of what's driving up home prices much faster than incomes, and making homeownership less affordable for more and more Americans. "We are simply facing a housing shortage, a major housing shortage," says Lawrence Yun, the chief economist at the National Association of Realtors which tracks home sales. "We need to build more homes. Supply is critical in the current environment." [Article continues...]( [Best Black Friday Sales for 2020]( Black Friday is a bargain-hunter's paradise, but it can also be tricky to navigate. The fact that practically everything is on sale at once can make Black Friday sales overwhelming for shoppers. And, with retailers marketing their sales so aggressively, it can be hard to cut through the noise and find worthwhile deals. This year, the uncertainty of 2020 has prompted some retailers to throw multiple Black Friday sales throughout November, making it even harder for shoppers to plan. To help you efficiently find the best prices on everything on your shopping list, here's your guide to the deals and products available at deep discounts during Black Friday 2020. [Click to continue reading this article...]( [Some Americans May Get Hundreds Of Dollars More In Social Security Benefits Under Biden's Proposed Change]( President-elect Joe Biden has plans to expand Social Security - and in some cases, the benefit retirees receive. In the campaign proposal of what he'd do for older Americans as president, Biden said he would improve Social Security, take the program off the path of insolvency, provide a higher benefit for the oldest beneficiaries and eliminate penalties for teachers and public-sector workers who may face eligibility issues. Biden also said he would implement a minimum benefit for Americans who worked for 30 years - at least 125% of the poverty level. "No one who has worked for decades and paid into Social Security should have to spend their retirement in poverty," his campaign site said. [More here...]( SPONSORED CONTENT [Options Trading System With A 94.8% Win-Rate On Last 727 Trades]( The key to being consistently profitable as a trader is to focus on high-probability trades. And in this powerful eBook by Dave Acquino, titled The Ultimate Income Trading System, you'll see exactly how Dave and so many of his students do just that. They make 4%, 5% or 6% on each trade and they're in the trade for just 11 hours. CLICK HERE for instant access. --------------------------------------------------------------- [Option Beast]( Send this to a Friend. [Click here.]( | Not a Subscriber Yet? 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