Earnings Season Is Here Earnings season has started, and we're looking for large beats and an increase in firms giving 2021 guidance. As of Q2 last year, there were 147 firms giving next year guidance. Obviously, that guidance was hogwash because an unexpected pandemic occurred. As of Q2 this year,
Four Negative Catalysts The stock market dealt with 4 negative catalysts on Tuesday. It's actually surprising that it didn’t fall more. Even with small cap value stocks underperforming, they did well considering the news. Johnson Johnson’s vaccine testing and Eli Lilly’s therapeutics testing were bo
Another Improvement In Small Business Confidence Small business confidence in the NFIB report rose from 100.2 to 104 which beat estimates for 100.9 and the highest estimate which was 102. We’ve basically recovered all the losses from the recession as the top chart shows. Every indicator except one i
Unbelievable Optimism The stock market is back to experiencing optimism as it is closing in on its record high. Monday was led by the big tech stocks, but small cap value also increased. It was a party where stocks like Apple got the craziest, but stocks like Mondelez also attended. It’s tough to ex
Small Businesses Are In Big Trouble Apparently, the stock market is fine with a stimulus being delayed until 2021. And it doesn’t matter to the market as long as the uncertainty over whether it will pass is gone. It’s a coin flip where the market wins no matter which way the election lands. Goldman
Unusual Option Activity Report The option activity wasn’t as unusual as it seemed multiple stocks experience repeat activity on Monday. That means that there has been more than one day or unusual trade that occurred over that period. Seeing multiple days of unusual activity or multiple trades can sh
Yet Another Rally It appears that the stock market is now on a 3 day winning streak as it increased on Friday. And the stock market is on fire as it has risen 7.4% since September 23rd. Some people need to be reminded that the rally since the bottom on March 23rd isn’t normal. A 7.4%
Weakness In The Labor Market? Past jobless claims data was weak. When there is a weak report, it looks more like there hasn’t been much improvement in a couple months. If next week’s report is strong, it will look less like that, but there is no doubt in the past couple months the rate of
Another Small Cap Rally The stock market is getting close to being overbought again which is amazing because a few weeks ago the market was down 10%. It’s amazing how many days the market can rally on the potential for a stimulus. This reminds us of when the market would rally on trade talks without
Not The Best Jobless Claims Report The jobless claims report from the week of October 3rd wasn’t that great probably because many businesses are on their last legs. Independent movie theaters are going bust now. COVID-19 situation is about to get a lot better. But that doesn’t help small businesses
