Stocks Will Never Fall Again?
Bullish Backdrop We have the vaccine starting to go out, a $900 billion stimulus, and the Fed saying it won’t hike rates through 2023. It feels like the stock market can’t fall with such a great backdrop. Pesky tech valuations are no match for momentum and the onslaught of buying from millennial retail investors. Many…
Fed Keeps The Pedal To The Metal
Stimulus Is Almost Here The stimulus is almost here. The latest details are the $900 billion stimulus will include checks between $600 and $700. It will also include $300 in weekly unemployment insurance for 16 weeks. This new bill is a revision of the $748 billion bill that excluded the politically divisive choices. This new…
Liquid State to Solid State: The Next EV Transformation
There has been a tremendous amount of interest surrounding the electric vehicle (EV) space and prices of these stocks have gotten a bit crazy. Many of these stocks have had single day turnovers of their float, which is a major indication of a top. While the frenzy has been palpable, where is the opportunity? Many…
Silver Stocks Find Second Day of Bullish Option Activity
Silver Unusual Option Activity Report This morning I posted on the significant option activity surrounding gold and silver. In that post, I gave a little history lesson that gold doesn’t always perform well during times when the Fed is expanding policy. The example I gave was from 2012 to 2014. Today, it’s a different environment…
Call Option Speculation Gone Vertical
Massive Stimulus Rally The stock market exploded on Tuesday in anticipation of a stimulus being passed later this week. It’s likely fully priced in now. And it's likely a stimulus will happen. This has been an amazing year for stocks as the S&P 500 and the Russell 2000 are up 14.4% and 17.5% year to…
Fiscal Stimulus Might Be Here
COVID-19 Hurting Mobility Redbook same store sales growth in the week of December 12th rose from 2.1% to 2.5%. That’s still relatively weak. We’ve seen varying reports from this holiday season, but it hasn’t stopped retail stocks from moving higher as the XRT retail index is up 11% in the past month. Investors are looking past…
Stimulus Talks Dusting Off Opportunity in Gold and Silver
Gold & Silver Unusual Option Activity Report Since the original CARES Act expired at the end of July, gold and silver have been backpedaling. However, as stimulus talks appear to be moving quickly toward a deal, the prospects for gold and silver are more lustrous. The early sign of this was the bullish option activity…
Cannabis Option Traders Find Their ‘Stash’…Again
Cannabis Unusual Option Activity Report After getting the post-election boost from the pro-cannabis bills passing, the momentum began to lag. As the price is currently flagging, the options market appears to be finding renewed optimism in the near-term prospects of the industry. You could say that these traders have, once again, found their “stash.” The…
Record Euphoria Despite 4 Day Losing Streak
4 Day Losing Streak? Shockingly, the S&P 500 is on a 4 day losing streak. It fell 44 basis points on Monday. We say ‘shockingly’ because the other indexes have done well and the S&P 500’s declines have been so small (it’s barely noticeable). There is still about the same amount of euphoria in markets…
Finally, We Will Know If A Stimulus Will Pass
Latest Stimulus Talks The government has been funding its agencies through continuing resolutions since September. The latest 1 week resolution lasts until December 18th. This yearly spending bill is important because the stimulus could be added to it as well. Republicans are currently looking through the 400 page $1.4 trillion bill. Since the deadline is…
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