Stocks Love The Weak Jobs Report
Euphoria Keeps Going Especially In Small Caps Small caps and cyclicals were riding high heading into the jobs report. Many were looking for a pullback once the weak jobs report came out. Instead small caps and value stocks rose even further. The short sellers must be at a loss if there are any left. They…
Labor Market Shows Signs Of Weakness
Disappointing Jobs Report Recent labor report disappointed estimates, but come out ahead of the ADP reading. The ADP report showed 307,000 private jobs added. The BLS report showed 344,000 private sector jobs added. That missed the consensus of 590,000 jobs and the lowest estimate which was 400,000. ADP finally got this one right after being…
Bad News for Economy is Good News for Markets
--Jobs report- horrific, BUY IT!--lockdowns, BUY IT!--Low volume--Liquidity concentrations continue to grow----options flow moves several stocks--Bonds take center stage after months of nothing!----Rates to far too fast? What’s working and what’s not-MUTSLA - vol will collapseINTCGS - do more of what worksMSFTCAT - take the good with the bad Do I want to be long?IWMXLEMJXOPFGE…
Tech To Have A Bad 2021
Solid Day For Stocks Other Than S&P 500 Thursday was a mostly good day for stocks. There was some modest volatility near the close on the news that Pfizer cut its estimated vaccine distribution for 2020 in half. That’s not important to stocks. The year is practically over. Vaccines aren’t going out until the last…
Many Don’t See A Stimulus Passing In 2020
Update On Stimulus The latest headlines on the stimulus sound good, but many are actually quite skeptical. On Thursday, McConnell stated he has seen “hopeful signs” for a deal, but he released a $500 billion proposal. He hasn’t moved his stance in the past few months. Pelosi and Schumer backed the $908 billion bipartisan proposal.…
Skew and Verticals: You’re Either with Me or Against Me
After the many years I’ve taught option trading, skew is probably one of the least understood concepts. In theory, applying skew is really easy. You want to sell thigs that are more expensive and buy things that are less expensive. Most people get that, but the issue with skew is that it’s not the price,…
Dow Drifts and Stocks Trend Higher
In the tired-old story of "stocks drift higher," all US equity futures slowly crept to new all-time highs except the small-cap /RTY Index. In tonight's video, Corey discusses the drift and highlights the downtrend in the Dollar that is assisting an inflationary drift. He also pinpoints the strongest market cap leadership stocks that continue to…
Snowflake, Carvana, and FuelCell Energy All Crater
Extreme Greed Continues The stock market inched up on Wednesday to a new record high. It continues to defy gravity. The CNN fear and greed index rose 2 points to 87 which is extreme greed. NAAIM index this week will be above 100 again since stocks haven’t fallen from last week. The AAII investor sentiment…
2020: Small Business Disaster
Small Businesses In Trouble NFIB survey is way too optimistic of a depiction of how small businesses are actually doing. The strength of small businesses is strongly dependent on the industry and state/city the business is in. Let’s look at more Paychex data from November. In Texas and Florida, the indexes are at 96.73 and…
IQ ‘Entertains’ Option Traders as Call Volume Surges
IQ Unusual Option Activity Report IQIYI Inc ADR (NASDAQ: IQ) is a Chinese online entertainment company that offers video games, online games, live broadcasting, social media platform, etc. The success of iQIYI's live action adaptation of “Hikaru no Go” made news yesterday. The first episode gained significant acclaim internationally and is shows the quality of…