Is the Bull S#*t Rally FINALLY Over?

NYSE: SPY | SPDR S&P 500 ETF Trust News, Ratings, and Charts

SPY – The S&P (SPY) finally looks ready give up the illusion of this rally in the face of rising coronavirus cases and a sickly economy. It is not too late for investors to prepare their portfolio for the likely eminent return of the bear market.

I normally write this weekly commentary on Friday afternoon. But this time around I had to wait til Sunday evening to see the stock futures. And to witness if investors were finally willing to admit that the rally up to 3,200 was always a case of “irrational exuberance”.

Right now market futures are pushing just below 3,000 which is kind of an important psychological area of support for stocks. The last couple times we got to this juncture stocks bounced back with gusto.

Interestingly a couple weeks ago the looming break down below 3,000 was thwarted by a “Hail Mary” from the Fed and Trump administration. First, the Fed announced the coming purchases of individual corporate bonds. Then later that same day the Trump administration trotted out plans to for $1 trillion in fresh infrastructure spending. Next thing you know the market rallied 5%.

Day by day since then the air has been coming out of the tires. And here we are again ending the week precariously balanced on this important level of 3,000.

This sets things up for a very interesting week where stocks either succumb to the depressing realities of the economic situation. Or we continue building this house of cards awaiting the collapse at some later date.

I know that with Coronavirus cases up 50% coupled with the worst economy in our lifetime that stocks SHOULD tumble below 3,000. I sense that once that actually occurs, then the FOMO will kick in to the downside and we could easily see stock prices tumble another 10-20% lower in short order.

On the other hand, I could just as well see stocks spike again extending the trading range scenario I spoke about in this recent article:  Bear Case + Bull Case = Trading Range? Especially true if the Fed has another well timed trick up their sleeve.

So yes, it could truly go either way at this stage. However, my economics degree + 40 years of investing tell me that we should still be mired in a nasty bear market. And that the bounce from bottom was starting to take on bubble proportions.

It has always just been a matter of time before the price of stocks better matches up with the still raging virus that will continue to hamper the economy and corporate earnings for months and, likely, years to come.

This is why I am confidently loaded up in a hedged portfolio for the Reitmeister Total Return newsletter that is built to rise as stock prices go lower. For example, this past week alone this portfolio has rallied +1.84% while the S&P shed -2.86%. So imagine how well it will do with the eventual return of the bear market.

The hedged portfolio is constructed of 4 stocks and 5 ETFs in order to enjoy gains while the market tumbles lower. And gladly it is not too late to get on board this strategy if you have not protected yourself already.

Going forward I will look for spots to emerge from the hedge by buying more and more undervalued stocks for the eventual return to a bull market.

I know its crazy out there. And I am trying my best to help investors make sense and profit from the situation. The best way for me to do that is give you 30 days access to the Reitmeister Total Return.

This is my newsletter service where I share frequent commentaries on the market outlook, trading strategy, and yes, a portfolio of hand selected stocks and ETFs to produce profits whether we have a bull…a bear…or anywhere in between.

Just click the link below to see 4 stocks and 5 ETFs in the portfolio now, and all the future trades as we find bottom on this bear and the new bull emerges.

About Reitmeister Total Return newsletter & 30 Day Trial

Wishing you a world of investment success!


Steve Reitmeister

…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return

 


SPY shares closed at $300.05 on Friday, down $-7.30 (-2.38%). Year-to-date, SPY has declined -5.82%, versus a % rise in the benchmark S&P 500 index during the same period.


About the Author: Steve Reitmeister


Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SPYGet RatingGet RatingGet Rating
.INXGet RatingGet RatingGet Rating
DIAGet RatingGet RatingGet Rating
IWMGet RatingGet RatingGet Rating
QQQGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Stock Alert: Breakout or Fake Out?

The S&P 500 (SPY) officially made new highs this week. Perhaps a reason to celebrate more gains on the way...or perhaps there are signs this move is hollow leading to more downside soon on the way. To help solve this riddle, 44 year investment veteran Steve Reitmeister shares his views along with a trading plan and top picks to stay on the right side of the action. That is what Steve Reitmeister will cover in his latest commentary below. Read on for more...

Read More Stories

More SPDR S&P 500 ETF Trust (SPY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SPY News