September PCE Shows Better Income Growth Monthly personal income growth in September was 0.9% which beat estimates for 0.3%. This was a good reading because the comp was revised higher by 2 ticks to -2.5%. Obviously, the comp was still easy. Yearly personal income growth rose from 5.5% to 6.2%. One
Thursday Calm Before The Storm The stock market rallied nicely on Thursday as both the S P 500 and the Russell 2000 rose 1.19%. Plus, the Nasdaq rose 1.64%. Tech stocks rose into earnings. Twitter, Apple, Facebook, Amazon, and Alphabet all reported after the close. They all fell after their earnings
Solid Jobless Claims Report Again Even with all the COVID-19 mania and fears of a slowdown, the jobless claims report in the week of October 24th was good again. That’s 2 good weeks in a row. Seasonally adjusted initial claims fell from 791,000 to 751,000 which was below estimates for 758,000 and ju
XLE Unusual Option Activity Report As the stock market was reeling into the close on Wednesday, a big fish entered the waters of XLE and took a large bite. That bit was a significant amount of option long call option contracts betting on a big move. The initial stages of a bullish move appeared on
To Hedge or Not to Hedge A lot of questions from our subscribers came in yesterday about how to hedge and whether they were too late to do it. It’s pretty typical for investors to think about hedging as the sell-off is occurring or after its over. One of the important points to make about
Brutal Correction On Wednesday Fear of COVID-19 exploding and new shutdowns finally got to the market as there was a major correction on Wednesday. S P 500 crashed 3.53%. There was across the board selling. It was less of a factor day and more of a panic day. Microsoft’s earnings related decline too
Worries Are Here Even though firms literally just reported great earnings this week, worries are back because traders believe Q3 is meaningless now that the economy is worsening. That’s true to an extent. The economy will be in worse shape in November because of COVID-19. A difference between invest
HAS Unusual Option Activity Report Hasbro’s share price fell 9.3% following the company’s earnings report on Monday before the market open. The price has been searching for support the past couple days, but Wednesday’s option activity is pointing to additional downside. HAS Seasonality In a statemen
S P 500 Bottoming is a Process The S P 500 has been searching for a tradable bottom since the sell-off following its September 2, 2020 high. The best way to describe the price action since that point has been “listless.” Without the drivers of stimulus and Federal Reserve policy easing, stocks have
Another Big Selloff For Small Cap Value COVID-19 trade is on which means large cap growth will outperform small cap value most days. Tuesday was an ok day for large cap tech and another disaster for small cap value. Bad COVID-19 data suggests this will continue, but good vaccine news can change that
