Supported by the ultra-accomodative Federal Reserve policy and rising optimism for a COVID 19 vaccine both the S&P 500 Index and the Nasdaq experienced in August their best monthly performance since 2000.

Stocks are now deep in a new bull market, less than 6 months after the vicious sell-off triggered by the COVID-19 pandemic. Both Apple and Tesla soared after their stock split, further boosting market sentiment.

On the other hand we saw some profit taking in bonds and gold that have outperformed during the pandemic and the current recovery back to pre-COVID highs.

Our strategies also performed positively with Universal +1.5%, MiniMax +4.8% and Pro +4.4%.

There are of course still many unknowns that investors seem to be discounting to the upside. Any number of things could happen that would result in a swift reality check. Because if you look “under the hood” the vast majority of companies in the big indexes are underperforming. The current rally is mainly driven by a small number of big tech companies.

But as usual I remain optimistic as the glass is definitely half full right now and our PentaTrader strategies continue to perform as planned.

Stay happy, healthy and wealthy!

Omar