The golf courses here in the People’s Republic of Massachusetts finally re-opened this past weekend. It was funny. For the first time in history, husbands played golf with their friends on Mother’s Day. Previously, in order to preserve domestic tranquility, the only husbands who played golf on Mother’s Day were the ones whose wives were also golfers (and whose children had grown and moved away).
However, the coronavirus changed everything this year. In households in Massachusetts (and around the country) this past weekend, the conversation went something like this: Husband…”Honey, I’m thinking about playing golf on Sunday with my buddies.” Wife…”Yes, PLEASE, PLEASE, PLSEASE play golf with your buddies on Mother’s Day. I married your for better or for worse, but NOT for 24 hours a day!!!!!”……In other words, this year’s Mother’s Day gifts were much different than they have been in the past!
Anyway, after two down weeks, the stock market saw a gain last week. The stock market has been stuck in a sideways range over the past month, but it is now at the top-end of that range. So if it can rally further, it’s going to be bullish on a short-term basis…as it will negate a possible “head & shoulders” pattern on the S&P 500. Thus there are certainly reasons for investors to remain optimistic going forward.
Of course, on the flip side, there are always reasons to be skeptical about any rally…even in the best bull markets…so this one is no different. The biggest concern right now is the fact that this rally has been a narrow one…which has been well documented by ourselves and many others. However, it’s also concerning that volume has fell dramatically last week…when the stock market was rising towards the top-end of its recent sideways range. The average volume (in ...