Best Election Week For Stocks Since 1932 FDR
Unchanged Large Caps (Great Week) Large caps barely moved on Friday as we ended a very strong week. S&P 500 and Nasdaq were up 7.3% and 9% this week as they had their best week since April. This was the biggest election week gain since FDR was elected in 1932. That only occurred because of…
Solid October Labor Report - Private Sector Job Creation Accelerated
ADP Wrong Yet Again ADP report was too negative again. October jobs report was very solid. Job creation in September was revised up from 661,000 to 672,000. Even better, private sector job creation was revised up by 15,000 to 892,000. Furthermore, in October there were 638,000 jobs added which beat estimates for 575,000. Private sector…
Stocks Reach Euphoria As Election Hedges Unwind
Insane Euphoria The stock market reached a euphoric stage on Thursday. On Wednesday, tech dominated the market. On Thursday, small caps joined the fun in what could only be described as extreme euphoria. Election hedges were unwound leading to big gains this month. That's not saying stocks won’t eventually go higher in the next year,…
Labor Market Barely Improves, Plus Fed Meeting Review
Decent Jobless Claims Report All things considered, this was an ok jobless claims report. Continued claims fell more than PEUCs plus extended benefits rose and non-seasonally adjusted initial claims fell. That sounds great but continued claims didn’t fall that much more than those benefits programs. Seasonally adjusted initial claims in the week of October 31st fell…
Post-Election Bullishness and Strong Stock Scan
The 2020 Election is behind us and so is the Fed Day! The only volatile event left this week is the Jobs Report Friday morning. In tonight's video, Corey traces the upward march of the market and highlights some of the strong stocks getting stronger including Google (GOOGL)…
Worst Day Ever For Regional Bank Stocks
Massive Sector Rotation To Tech & Healthcare Presidential & Senate election caused a massive sector rotation. Premise is that there won’t be a tax hike because the GOP won the Senate, but there won’t be a grand stimulus either. That’s perfect for the long bond and tech. It’s terrible for the banks, cyclicals, and value…
Labor Market Inches Towards Bottom of Financial Crisis
Weak November ADP Report Even if the 3rd COVID-19 wave didn’t happen, we’d be seeing some slowing. The economy can’t grow at a double digit pace and create 1 million jobs per month indefinitely. Obviously, we did have a 3rd wave which means there will be some impact this fall. We just don’t know how bad the…
Big Cyclical Election Day Rally
Huge Election Day Rally The stock market rallied hugely on Tuesday which might be given back on Wednesday depending on how the election goes. It seems like the market started to unwind some of the protection put in place a few weeks ago. That unwind doesn’t make sense now that we know the election was…
Why Oil Prices Could Spike
Improved Sales Growth An ongoing thesis in the past month has been that the consumer is bumping along the bottom in terms of RedBook same store sales growth. The consumer isn’t taking a tumble to the negatives. But spending growth isn’t going to go back to the mid to high single digits which is normalcy. …
Monday Reversal: Tech Underperforms Like October
Strong Monday Reversal The stock market reversed course on Monday after having a terrible week. This was an oversold rally. We had a continuation of last Friday in that the tech stocks underperformed and small caps did well. A difference was energy rather than banks had a huge upswing. Investors are betting on a cyclical…