Is It Time To Buy The Dip??? - Part 41
I live in Pennsylvania and my state when green on Friday. This morning I went to pick up my taxes from accountant. On my drive, I must of past 3-4 dinners. I made it my purpose to scan the parking lots of those diners only to find the lots were half full. Not for nothing, but you wouldn’t catch me dead in a diner, a restaurant, movie theater, etc. The rise in new COVID-19 cases are the result of people venture outside to enjoy summer and relaxed restrictions.
There are now more than 2.4 million COVID-19 cases and at least 125,000 people dead in the US. But according to Dr. Robert Redfield, director of the Centers for Disease Control and Prevention, he believes the actual number of people who have been infected is likely 10 times as high based on antibody testing.
Washington is the latest state to pause its reopening plans after a spike in the number of new cases of coronavirus across the country. At least a dozen other states, including some of the most populous in the country, have taken similar measures in the past few days.
More than half of the states are facing a surge of coronavirus cases and it's threatening to overwhelm hospitals. Texas and at least five other states -- Florida, Georgia, Idaho, Tennessee and Utah -- reported the highest single-day totals of new Covid-19 cases, according to the state's health departments.
More governors have announced that they are not moving ahead to their next reopening phases. Those states include Arizona, Arkansas, Delaware, Idaho, Louisiana, Maine, Nevada, New Mexico and North Carolina.
Florida put restrictions on bars as the state reported nearly 9,000 new COVID cases in a day, with Miami pausing its reopening as hospitalizations surged. Gov. Greg Abbott of Texas announced a pause on reopening due to a nearly 12% positivity rate. Why do I mention there two states specifically, because they have taken the place of New York as being the new epicenters of COVID-19.
And this is why DOW dropped 855.91 points, or 3.3% for the week, while the S&P 500 index fell 2.9% and the Nasdaq fell 1.9%. But that's not the only reason, just the main reason. The Federal Reserve released the results of its bank stress tests. The Fed said some banks will have to suspend their stock buyback programs and prohibited from increasing their dividends. On the news bank stocks went lower.
Regarding the DOW, price has increased its distance from the 200 day moving average. However, I think the DOW can move lower as the chart suggests the next stop is the daily demand at 24250.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.
Posted Using LeoFinance
