Three Stocks to Trade for Three Rate Cuts
The infamous Fed Dot Plot showed most committee members are forecasting three rate cuts in 2024. For those of you who’ve been hiding out in the woods since 2009, rate cuts can act like rocket fuel for many, many stocks… and poison for others. And we could get three hits of it this year. And…
The Fed Just Delivered Some Irrational Exuberance of Its Own
Another Fed Day has come and gone… and what a dud. Not only has the S&P 500 fallen off its daily highs, but - big picture - the central bank has completely failed to curb inflation. That’s despite all the cheerleading they’ve done over the past, I dunno, three years. More to the point, that…
Powell Could Spoil the Fun as Stocks Coil Near All-Time Highs
We’re seeing some powerful sector rotation just under the surface of the market… There are huge opportunities to profit now in energy, basic materials, the industrials, and consumer staples. That’s the good news. The perhaps-not-so-great news is that we’re now seeing the kind of price action typically witnessed in later stages of the equity market…
Google Gaps, the S&P Stretches, and Big Money Hedges - Here’s What You Need to Know
Word that Apple might let Google play with its powerful Gemini AI product sent both stocks strongly higher today; GOOG gapped up more than 4% by late in the day. AI is once again providing the rocket fuel for liftoff. The S&P 500 is pushing toward new all-time highs… but the FOMC will release a…
Market Correlation is Causation for Concern
"The correlation between the Big Tech stocks and the rest of the S&P 500 is low, compared to history," says a recently published Barclays note. I kind of agree. The big guys are right once in a while. But the note goes on to say that Big Tech/S&P 500 correlation actually spikes when markets sell…
What Consumer Spending Tells Us About Nike's Future Earnings
Few things can hit the market as hard as the American consumer’s mood. The impact isn’t always direct or proportional or even immediate, but it touches almost everything, and many stocks virtually live or die by consumer sentiment. Last week we looked at what sentiment will do for… and to… Costco. This week, we’re going…
The Triple Witch Returns...With Trillions in Risk to the Markets
Everything’s got an expiration date - milk, bread, bananas… and derivatives. This Friday - day after tomorrow - we’ll see stock options, index options, and index futures worth trillions all expire on the same trading day. It’s called “triple witching,” and if for some reason you’ve never been through one before, you’re in for a…
Stocks Are Testing New Highs as Inflation Comes in Hot (Again)
The headwinds are blowing stronger and stronger, but most stocks are still defying gravity and, in a lot of cases, common sense. All three big indexes were looking strong in late trading today. And this is all despite the fact that we got a hotter-than-expected CPI report this morning. But Bitcoin, which, along with gold,…
Nvidia Options Are Fading - Here's What Comes Next
Maybe you were camping on a mountaintop or lost in the woods this past Friday, but Nvidia, one of the market’s most important, high-volume stocks right now, took a wild ride to close out the week. Options volatility exploded higher as the seemingly unstoppable bullish fever on the stock broke. Shares slid around 10% from…
Here's Why the Selling Is Different This Time
The indexes took a hit today. The S&P, which had been up nicely to new all time highs surrendered to the red at the end of the day. But saying "stocks are down" is like calling the Pacific Ocean a "puddle." It doesn't do anywhere near enough justice to the insane price action we saw…
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