COVID-19 Still Bad In Select States Many continue to believe COVID-19 is a risk factor for markets. Bulls like to say that the deaths are down and this isn’t a 2nd wave. They are correct, but they leave off the increase in hospitalizations and the increase in the percentage of tests that are positiv
Strange Trade News On Fox News, Peter Navarro announced the trade deal with China was over. This sent the futures market into a tailspin. S P 500 fell from 3,120 to 3,066. This was shocking. It came completely out of left field. We didn’t expect trade news on a Fox News talk show at 9PM. Almost
Job Postings Improve Further Even though last week’s jobless claims report was terrible, the Indeed data shows continued improvement. We will need to wait until next Thursday to see which is correct. The labor report is on Thursday because the 4th of July is causing a market holiday on the 3rd of Ju
Very Unusual Day The stock market had a relatively boring Friday until right before the close. Before getting into that, let’s explain why. Usually, we can only guess why stocks move strangely, but this time we know. It was quadruple witching day and the index funds rebalanced. This rebalancing was
COVID-19 Is Still A Problem COVID-19 never really went away, but it’s about to be a problem again for the market. We saw the first negative market reaction in a couple months to anything COVID-19 related when Apple announced it was temporarily closing stores in Arizona, Florida, North Carolina, and
High NAAIM Index High Bears Thursday’s sentiment indexes were very confusing. NAAIM exposure index spiked again as fund managers bought the 7% correction. It’s no surprise people bought the dip because the market recovered. This index spiked from 77.48 which is a modestly high reading to 88.25 which
Terrible Jobless Claims Report After seeing the jobless claims reading, it was shocking that the stock market didn’t decline significantly on Thursday. It barely moved as it didn’t react to the big miss. An analyst claimed stocks didn’t fall because the prior day’s retails report was great. That’s n
Slight Wednesday Decline Compared to all the recent wild swings, Wednesday’s trading session was boring. S P 500 fell 0.36% which was a 0.88% reversal from the high. To me, it seems like the market is uncertain about its next move. It has had such momentum, but since everyone is positioned bullishly
Powell Freeze Fed chair Powell stated, “There have been market reactions when we try to shrink the size of the balance sheet.” Powell is looking to freeze the size of the balance sheet after QE ends. We’ve seen this with other central banks where they decide that the balance sheet staying stable is
Extreme Speculation Is Back This market is incredible. Just after we had a big 5.9% decline on Thursday, the market is back to its euphoric ways. You can see it by following retail traders. Psychology is very funny. You never know what will change the tide. If you told investors about a market that
