The Nasdaq Selling has Commenced
A significant pullback in the NASDAQ led by the monsters of tech today. This is what happens when the markets are so heavily weighted in very few stocks. We've been looking for this move, positioned for it, and got it today. There may be some more opportunities to get short this week. Here's what to…
Tesla Insanity Knows No Bounds
Tesla Spikes 11% Tesla stock rose 10.8% on Friday which means it’s now up 65.5% since June 12th. Investors follow Tesla so closely because it is representative of the bubble in growth stocks, particularly in electric vehicle firms. There would be no other way for such a large company to rally so much unless there…
Big Spike In COVID-19 Cases, Labor Market Still A Problem
Record New COVID-19 Cases Unfortunately, even though it seemed like the number of new COVID-19 cases per day was starting to show slower growth, that gave off false hope as the number of new cases lurched to a new record by far on Friday, increasing to 71,787 from 61,067. The likelihood of a complete shutdown…
Exuberance, Divergences, and Volatility! Everything You Want in a Market
NASDAQ gets downright sketchy--EM ripped apart 2 consecutive weeks--short duration bid-less moments--divergences are massive! Hold me! Market Caps- you want exuberance, you got it!TSLA = GS+CAT+COST Earnings Season - yes again!--financials - Debt risk hit the fan?--can any corporation provide forward guidance? Who says you cannot BUY Iron Condors?--Welcome to Gamma Irons--IV ranks--GLD--TLT--SPY SPX Expected…
Stock Market Is Broken?
Small Cap Value Is Destroyed On Thursday, the stock market broke. There was nothing wrong with trading, but the relative performance of the small cap value stocks versus the major tech stocks hit extreme levels. It’s unnerving. There is little doubt this is a tech bubble. A problem with bubbles is they lead to unrelenting…
Economic Restrictions Increase Causing Small Businesses To Close
COVID-19 Stays A Problem COVID-19 seems to still be a major issue for the south and the west. There was some hope that the July 4th holiday caused the spike in cases & deaths earlier in the week. However, bad results have remained even through Thursday. Good news is the 7 day average of growth in…
Bonds Surge, Stocks Fall, Tech Rises - What Now?
You're not alone if you were perplexed by today's price action, namely with everything working as planned… except for the stubborn strength in leading tech names. In tonight's video, Corey highlights the ongoing bond market surge and breakout along with the majority of stocks (in the SP500) falling today (some with large declines) but all…
Nasdaq Continues To Get More Extreme
Nasdaq Beyond Extreme- Time To Get Out The stock market had another modest rally on Wednesday; the Nasdaq outperforming was notable because of how extreme it is. It was up 1.44% as the cloud and electric vehicle stocks exploded along with the FAAMNG internet names. CLOU cloud ETF was up 2.74% which is an enormous…
Job Losses Coming In July?
Recovery Tracker Falls By now you know the economy has been weakening in the past 3 weeks. We saw more evidence of this in the Oxford Economics recovery tracker. As you can see from the chart below, the tracker has fallen in 2 of the past 3 weeks. This index fell 0.4 to 75.6 in…
Nasdaq on Borrowed Time?
Once again the QQQ is bumping up against the expected move for the week. Here are the types of trades Don is looking at to take advantage of the impending move...