Weakness Hits But Was It Due? Chegg And Regeneron Buck The Pullback

TL;DR

Nasdaq and S&P 500 experienced losses due to spillover effect from previous day's weakness, but Nasdaq remains stronger than S&P 500. High-quality stocks and coronavirus plays can be more resilient on down days.

Transcript

good afternoon everyone and welcome to stock market today it's Alisa chorim and Justin Nielsen here and on today's show we're gonna be taking a deep dive into the technicals for the broad market action and we're also going to be taking a look at Cheng and Regeneron but first let's take a look at those major indexes so here we have a chart of the Na... Read More

Key Insights

• 🥳 The spillover effect from previous day's action and concerns over coronavirus headlines contributed to market weakness.
• 💪 The Nasdaq remains strong, while the S&P 500 is weaker due to its exposure to industries impacted by the shutdown.
• 🖐️ High-quality stocks and coronavirus plays have been resilient during market pullbacks.
• 🛀 Chegg and Regeneron are examples of stocks that have shown resilience and potential for further gains.
• 🇰🇼 It is important to wait for setups and not chase extended stocks.
• ⌛ IBD Live provides in-depth analysis and real-time setups for top stocks.
• ⌛ Learning from real-time examples helps improve understanding of stock market dynamics.

Questions & Answers

Q: What caused the weakness in the stock market today?

The weakness can be attributed to a spillover effect from the previous day's rough action, as well as concerns sparked by Jerome Powell's comments and coronavirus-related headlines.

Q: Why is the Nasdaq stronger than the S&P 500?

The Nasdaq has been more resilient due to its exposure to technology stocks and the "stay-at-home" economy, while the S&P 500 has more exposure to industries impacted by the shutdown.

Q: How can investors identify resilient stocks during down days?

Investors who diligently screen high-quality stocks and focus on those with strong chart patterns and earnings performance are more likely to find resilient stocks during market pullbacks.

Q: Which stocks have shown resilience in the market recently?

Chegg, an online textbook provider, has experienced a powerful upward move due to its benefits from remote learning. Regeneron, a biotech company, is also setting up for potential gains after a strong run this year.

Summary & Key Takeaways

• The Nasdaq saw widespread losses, but rallied towards the end of the day, while the S&P 500 fell and undercut the 21-day moving average.

• Nasdaq remains stronger than S&P 500, reflecting the shift to more Nasdaq-centric stocks in portfolios.

• High-quality stocks and coronavirus plays have been more resilient and continue to outperform during market pullbacks.