Rare Treat - Energy Beats Cloud Stocks
2 Day Losing Streak Right after we mentioned there was a lot of optimism in markets, we had a 2 day losing streak as the S&P 500 fell 66 basis points on Wednesday. This decline was uniform unlike on Tuesday when small cap value led the decline and large cap tech rallied excluding Apple. On…
Q3 Earnings Season Is Underway
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, 138 firms gave 2021 guidance. …
Markets Navigate a Path full of Headline Risk
In tonight's video, Corey highlights how to think about risk and headline events going forward in the next few weeks. We also highlight stimulus and the path of leading financial stocks along with the ETF XLF. Finally, Corey pinpoints some of the 'strong stocks getting stronger' but on the verge of a pullback now…
Stocks Barely Fall Despite Negative News On COVID-19 and Stimulus
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 both paused. Those are normal events, but the stock market…
Consumer Spending Growth Weakens
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 increased in the September reading. Expected credit…
Buy the Rumor, Sell the Financials
Earnings season kicked off with financials which led to a little bit of selling today. Don takes you inside his positions and as to why he took off his hedge and has a more directional bias at the moment.
Optimism Brings Market Near Its Record High
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 explain the…
Small Businesses Can’t Pay Rent
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 is…
Repeat Option Activity was ‘Order of the Day’ Monday
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 show even more conviction from traders. I…
What the Sectors and Strong Stocks are Saying about the Rally
We had a holiday bullish breakout in the equity markets where our strong stocks kept getting stronger and key sectors showed strength. What are the signals and setups from today's action? Join Corey in tonight's update video to start your week…