Abbott Laboratories (ABT) stock price gains more than 7%, at 79.97+5.41 (+7.26%). Microsoft Corporation (MSFT) stock is among the most active stocks with a stock price of 159.86+10.16 (+6.79%). B2W – Companhia Digital (BTOOY) stock is among the stock losers today, with a stock price of 20.60-12.05 (-36.91%).
“US stocks had a rebound this week, and all major US stock indexes closed higher. But it could still be too early to call this the bottom for the US stock market. Could it be that the stock market has already discounted all the negative implications of the coronavirus outbreak, and it reacts positively to any negative financial news? Like the record weekly US initial jobs claims surpassing the reading of 3 million posted this week. I am not so sure about that.”
Stocks today rally despite the fact of a very negative number for weekly US jobless claims. “U.S. jobless claims skyrocket to 3.283 million.
The COVID-19 pandemic is wreaking havoc on the U.S. economy, and data released Thursday morning reflected the severe damage being done to the labor market.
The number of Americans filing for unemployment benefits skyrocketed to a record-breaking 3.283 million for the week ended March 21. Consensus expectations were for 1.64 million claims. The previous record was 695,000 claims filed the week ended October 2, 1982. Initial jobless claims for the week ended March 14 was revised higher to 282,000 from 281,000 and was the largest single-week increase since the Great Recession.”
When will the stock market find a bottom, being an opportunity for stocks to buy
The answer to when will the US stock market find a bottom after the steep selloff during this global coronavirus crisis is not an easy one. In fact, if it is supported with facts that have great validity it is priceless for stock trading, stock investing. For now, all opinions mostly based on models, predictions and technical analysis about searches related to stock bottoming patterns, market bottom indicators, how to tell if a stock has bottomed, stock market bottom, has the market bottomed are just estimates.
The stock market will bottom when the good news about the vaccine for the coronavirus hit the news, or fear and panic are both reduced, and traders, investors start buying stocks and equities considering them to be near very attractive price levels. Most probably it will be another FOMO effect (fear of missing out), now buying stocks rather than selling stocks. There will be a great distortion for the fundamentals and valuation of stocks until we get official earnings reports and economic indicators which will show how the degree of economic impact coronavirus will have on the economy.
The stock market will bottom when a broader stock market index, Russell 3000 start to rise
“What Is the Russell 3000 Index? The Russell 3000 Index is a market-capitalization-weighted equity index maintained by FTSE Russell that provides exposure to the entire U.S. stock market. The index tracks the performance of the 3,000 largest U.S.-traded stocks which represent about 98% of all U.S incorporated equity securities.”
The Russell 3000 index has not made a death cross yet in 2020, despite the latest stock market selloffs
” A death cross occurs when the 50-day moving average (DMA), which many chart watchers use as a short-term trend tracker, crosses below the 200-DMA, which is widely viewed as a dividing line between longer-term uptrends and downtrends. The idea is the cross marks the spot that a shorter-term selloff can be defined as a longer-term downtrend.”
As seen on this chart with data at close on March 20, 2020, the Russell 3000, has not yet made any death cross in 2020. The Dow is the only stock index compared to the S&P 500 and Nasdaq Composite to have made a death cross recently. This could be a bullish sign for stocks.
We place emphasis first on the fundamentals of stocks, and after that to technical analysis. But the fact that the Russell 3000, has not yet made any death cross in 2020, maybe an optimistic sign for stocks to invest in, stocks to buy. We just cannot predict the actual bottom for the stock market. Monitoring the news and stock prices, stock quotes and latest financial and business news will tell us about the when will stock market bottom. Important economic indicators to monitor are the retail sales, GDP figures, unemployment readings, non-farm payrolls readings. When will the stock market bottom in this coronavirus crisis is too risky now to make a prediction. Or where the market is headed. Caution is required for stock trading, stock investing, and mostly good risk management and money management.
How do you know if a stock hits the bottom?
The truth is, you do not. You just observe higher stock prices and other technical aspects. Bottom-fishing stocks can be too risky.