Markets Pull Back But Rally Still Intact; Fear Index, GSX Techedu and Amazon In Focus

TL;DR

Major indexes, such as the Nasdaq, experienced substantial losses this week, with the Nasdaq Composite down 3.8%. The CBOE Volatility Index (VIX) spiked to levels not seen since 2008. GSX and Amazon are two stocks to watch, with GSX showing strength above its 50-day moving average and Amazon displaying relative strength amidst market volatility.

Transcript

good afternoon everyone and welcome to stock market today its Alisa chorim and I'm joined by Justin Nielsen on this Friday March 20th and on today's show we're gonna be taking a look at the CBOE Volatility Index as well as GS X and Amazon but we begin with a look at the major indexes so this is a chart of the Nasdaq you can see pretty substantial l... Read More

Key Insights

• 🫰 The Nasdaq Composite and other major indexes experienced significant losses this week, with the Nasdaq down 3.8%.
• 😨 The spike in the CBOE Volatility Index (VIX) to levels unseen since 2008 indicates elevated fear and uncertainty in the market.
• 📶 GSX has shown strength by holding above its 50-day moving average and displaying relative strength compared to the S&P 500.
• 📶 Amazon has maintained relative strength amidst market volatility, outperforming the S&P 500.
• 🥳 A follow-through day is an important indicator of a sustained market rally.
• ℹ️ It is crucial to stay updated with market conditions and historical precedents through sources like IBD Live.
• 🍝 Despite current pessimism, market recoveries have occurred in the past, and being prepared for potential opportunities is essential.

Questions & Answers

Q: What is a follow-through day in the stock market?

A follow-through day is a key indicator of an uptrend and occurs when there is a second point of confirmation following a rally attempt. It is often seen as a sign of a sustained market rally.

Q: What does a spike in the CBOE Volatility Index (VIX) indicate?

A spike in the VIX suggests increased fear and uncertainty in the market. It measures the implied volatility of the S&P 500 and is often used as a gauge of market sentiment.

Q: Why is GSX a stock to watch?

GSX has shown strength by maintaining support above its 50-day moving average and displaying strong relative strength compared to the market. These factors suggest the stock may outperform during market volatility.

Q: How has Amazon performed amidst the current market conditions?

Amazon has displayed relative strength compared to the S&P 500, with its stock declining less than the overall market. Despite facing resistance at its 50-day moving average, it remains a stock of interest due to its potential for outperformance.

Summary & Key Takeaways

• The Nasdaq Composite closed down 3.8% for the week, with the index dangerously close to undercutting the previous day's rally attempt.

• The CBOE Volatility Index (VIX) spiked to levels not seen since 2008, signaling high levels of fear and volatility in the market.

• GSX is a stock to watch as it maintained support above its 50-day moving average and displayed strong relative strength compared to the S&P 500. Amazon also showed relative strength, although it faced resistance at its 50-day moving average.