V Shaped Recovery Is In
V Shaped Recovery In Retail Sales It was wrong to be so negative on July’s economic data. Even though headline retail sales growth missed estimates, it was a pretty good report. We're still calling for a cyclical recovery. If August’s data is better than July’s it will be really good. We already saw how solid…
Apple & Tesla Keep On Winning With No End In Sight
No Record High On Thursday: Small Cap Value Underperforms The stock market delayed a new record high one day by falling on Thursday, but the hottest stocks continued to win. It appears small cap value’s outperformance streak ended at 3 days. This streak went from last Friday to this Tuesday. Every time small cap value…
Big Labor Market Improvement
Strong Jobless Claims Prediction for a strong labor market in August looks good as the jobless claims report from the week of August 8th showed a lot of improvement. BLS report’s survey week is next week’s jobless claims report. As long as it shows more improvement, we could end up with better job creation in August…
Retail Bonanza As Tesla Spikes
Huge Wednesday Rally Some investors thought the sharp reversal on Tuesday afternoon was a key signal. That was a mistake as the market had a huge rally on Wednesday for seemingly no reason. S&P 500 was up 1.4%, the Nasdaq was up 2.13%, and the Russell 2000 was up 0.52%. Mega cap growth stocks destroyed…
Demand For Used Cars Explodes & CPI Inflation Increases
Used Car Market On Fire This recession and subsequent recovery have been highly unusual. One of the unusual parts has been the extreme demand for used cars. Social distancing has caused a decline in public transportation and airplane usage. Cars are being used to commute to work and for vacations. Used cars are especially in…
Small Cap Value Now Leading The Market
Now The Market Sees An Economic Recovery Starting in July, this has been the craziest market most have ever seen under the hood. Factor performance dispersion is higher. Starting Friday, we have seen value small caps outperform after sharply underperforming large cap growth stocks since June 8th. There were many interesting movements on the day.…
Same Store Sales Growth Rebounds
Very Strong Redbook Improvement Narrative for the past few weeks has been the economy will strengthen in August as the number of COVID-19 cases falls. In the past few days, the decline in cases has slowed, but it’s still below the July peak and hotspots have cooled off. Next worry is about cases spiking as…
U.S. Stocks Are Unstoppable Even Without The Leaders
Market Is Unstoppable Just like Friday, the small cap value stocks outperformed dramatically. Once again, the S&P 500 rallied (0.27%) even though the winners of the past few months didn’t drive it higher. It’s remarkable to see the tech stocks underperforming while the index increases. Bears have been saying that the stock market can’t go…
Executive Orders Bring Benefits - Labor Market Improves
President Trump’s Executive Orders The stimulus has gotten a lot messier than many thought it would be. This is not going according to plan. President Trump issued 4 executive orders which at first glance saved the day, but actually, according to some analysts, may not have. The stock market is on a 7 day winning…
Cloud Stocks Crash - This Is Just The Beginning
Big Sector/Factor Rotation This stock market never seems to go down. Either growth or value stocks do well. No matter what outperforms on the day, the S&P 500 always ends higher. On Friday, there was a major sector rotation out of large cap growth stocks and into small cap value names. Even so, the S&P…