A double dose of vaccine news have helped to boost US stocks [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Listen to the latest market mood for the S&P500.

The risk tone has been broadly higher over the last week in the markets as a double dose of vaccine news boosted risk sentiment, and US stocks, higher. The Pfizer/BioNtech vaccine news last week and the Moderna vaccine news yesterday have all helped to boost US stocks.

Although wider questions do remain in the near term about how COVID-19 cases will drag on economies short term, the bigger picture is positive for stocks deep into 2021. On top of this seasonally the S&P500 does very will at the end of November in the run up to early December. In the last 10 years the S&P500 has only lost twice between 22 Nov and 2 December.

Therefore, expect S&P500 buyers on pullbacks.

Trade Risks: The main risk to this trade is if there is a negative change in the risk tone and/or the US has a national lockdown.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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