Similar Architecture

The Fed's individual corporate bond buying news yesterday coupled with more chatter from President Trump about a massive infrastructure stimulus package seems to be more familiar architecture behind the current squeeze we have seen since yesterday morning's soft open. While it is true that Fed Chair Powell is giving Senate testimony this morning which did lead to a fade, buyers are making a push to get the indices, all soundly in the green up around 2% give or take, back at new highs. 

Even with a surprising amount of individual names red below the surface which one would think would be punishing shorts today, like TSLA, we do have some interesting setup developing if bulls prove that the morning intraday dip was merely another trap to lure in shorts before we go higher yet. 

Peloton is a name which, various state re-openings or not, seems to have been one of the clear breakout stars from the pandemic and seemingly new way of life. As an example, even if the states and many gyms re-open, and they are now, there are likely many former gym-goers who will simply bypass it altogether and opt for the PTON product. Note the stock going red-to-green today and poised for a new breakout on the daily chart, below.  

The rally over the last twenty-four hours has the look and feel of what we have seen plenty of times since March--Aggressively easy policies on both the monetary and fiscal fronts providing a backdrop for bulls to feel emboldened to do their things. The only way that changes is if and when we see confidence lost in the actual policies themselves to the point where rhetoric about the policies becomes a selling event rather than a buying spree.