Your Monday Blip 8/24/20

Your Monday Blip 8/24/20

Markets were higher to start the week after promising virus treatment news emerged on Sunday. At the close the Dow gained 378 points to at 28,308 on heavy trading volume. Going over the 28k mark for the Dow might signal that resistance levels are being breached as both IBD and BTS continue to indicate support for a rally in stocks.
Airline stocks today were higher after a Bank of America analyst gave an update on bookings. The latest figures show that leisure bookings continue to improve and are now down only 52.3% from last year which was an improvement vs negative 55% over the prior week. Business travel however is a different story and corporate bookings are off 88% from last year and currently showing no signs of recovery. Airline stocks across the board were up on this news. I guess investors are seeing the airplane half full instead of half empty.
Heading into its month end stock split, shares of Tesla traded both up and down as some gurus point to strength in China as reason for a bullish target price of $3,500 per share while others point out the insane valuations on the stock and predict a target price of $87 per share. The bear case for Tesla is that they will sell 500k cars this year and so does not warrant a valuation greater than Toyota or VW both of which sell millions of cars plus are coming out with their own electric vehicles. This debate will continue but I agree that after the huge run, caution on Tesla is wise.
The scouts head out tomorrow for their 50 miler in the Olympics. There are 15 lunkheads and 4 adults on the trip. Will have a report next week on how things went. This past weekend we had another eagle project get done. It was a project to clean up overgrown areas in a park. There were over 20 scouts in attendance and the project went well.

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