Risk Assets Gone Awry...
Stocks explode higher this week moving 2 standard deviations. The move greater than the expected move has occurred for the 2nd week in a row which is very rare. Strangely enough the options market has lowered the expected move for next week. In this crucial weekend video newsletter we look at the defensive sectors that…
Global Semiconductor Sales Signal A Recession In 6 Months
Global Semiconductor Sales - Slight Decline Ends 3 Day Winning Streak The stock market fell slightly, ending its 3 day winning streak. S&P 500 fell 9 basis points, Nasdaq fell 0.16%, and Russell 2000 fell 0.4%. This slight decline maintains the narrative that the S&P 500 can’t get above this ceiling which is a little bit…
Inflation Won’t Cause The Fed To Hike Rates
Inflation Estimates Fall Inflation estimates for 2019 were much higher 6 months ago than they are now. Economists see the writing on the wall. Inflation won’t be a problem in 2019, and the Fed definitely won’t raise rates. Economists didn’t see the slowdown coming and they thought rising nominal wage growth would generate inflation. Phillips…
Six Strong Stocks at New 52 Week Highs
Which stocks in the SP500 are candidates for bullish trades? In tonight's video Corey walks you through key stocks - out of 37 - making new 52 week highs. Use these as candidates to trade future pro-trend pullback or retracement strategies that assume strong stocks get stronger (and the trend continues higher).
S&P500 Range In The 2,800 For The 5th Time In 6 Months
S&P500 Range - Back Again So Soon? S&P 500 was up 0.69% on Wednesday as it now is on a 3 day winning streak after coming off a 5 day losing streak. In those 3 days, the S&P 500 has gotten back all the losses from last week and more. The S&P 500 is now at…
Utilities More Than Double S&P 500 Returns Since February 1st
Utilities - Economic Review Economic growth should be strong in 2019 based on the strength of the consumer as real wage growth is at a cyclical high. GDP growth might not be great in Q1. Even though wage growth has been strong, there was a scare from the government shutdown which curtailed spending. If the…
Equities Versus Interest Rates Something Has Got To Give
Stocks move higher today after meeting some resistance at the 2811 gravity point. In tonight's video newsletter we point out the big divergence between the stock market and interest rates. Will interest rates rise to close the gap or do stocks need a pull back? Watch this video newsletter to find out and get the…
Small Business Optimism Rebounds Slightly
Small Business Optimism - Another Rally Tuesday The stock market has almost recovered all the losses from the minor correction last week. On Tuesday, S&P 500 increased 0.3%, Nasdaq increased 0.44%, and Russell 2000 was up 6 basis points. Just like what happened 3 times last fall, the S&P 500 has had trouble around the…
Core CPI Inflation Falls Modestly, Supporting Fed Pause
Core CPI Inflation - Redbook Same Store Sales Improve Slightly Core CPI Inflation - Redbook same store sales growth was much quicker than retail sales growth in December and January. Investors are interested in seeing if this relationship continues. This would imply retail sales growth being weaker in February since Redbook sales growth fell. I…
Key Level Update and Stock Plan for this Week
With the SP500 back into the critical "Make or Break" Resistance, will price continue trading in its short-term range or breakout this week into a short-squeezed bullish rally this week? And with that bigger picture plan in mind, what are some opportunities in key stocks such as Amazon, Apple, Google, and even Boeing this week? …