Strong ISM PMI Shocks The Bears
September PCE Inflation Low Again Inflation isn’t a worry in yet another report. September PCE reading showed headline inflation rose from 1.3% to 1.4% which missed estimates for 1.5%. Core PCE inflation was up from 1.4% to 1.5% which missed estimates for 1.7%. While inflation wasn’t an issue in this report, the market is looking…
Fisker, the Oldest New Kid on the EV Block
Fisker Inc (NYSE: FSR) Back in 2012, Tesla and Fisker were two fresh-faced EV car companies bursting onto the scene. However, just like the film Highlander, there could be only one. In the end Tesla went on to EV dominance and Fisker lasted about a year before filing for bankruptcy. The Federal Government lost about…
Election Risk? Here’s How to Hedge It
Election 2020 Hedging Edition Many investors are nervous about the upcoming election. Do we know who wins on November 3rd or 4th? Heck, will we even know by the end of the month? Also, what will the market’s response be to the election results? There is definitely more questions than answers and even if the…
Major FAANG Tank
Tech Earnings & COVID-19 Fears Tank Markets The stock market fell because of tech earnings and COVID-19 cases spiking on Friday. With all the FAANG stocks cratering except Alphabet, we all wonder if there was some profit taking and some fear of rising rates. Oddly, even though stock investors fear a slowdown because of COVID-19…
Government Helps September Income Growth
September PCE Shows Better Income Growth Monthly personal income growth in September was 0.9% which beat estimates for 0.3%. This was a good reading because the comp was revised higher by 2 ticks to -2.5%. Obviously, the comp was still easy. Yearly personal income growth rose from 5.5% to 6.2%. One problem with this reading…
Big Tech Earnings Crash The Nasdaq
Thursday Calm Before The Storm The stock market rallied nicely on Thursday as both the S&P 500 and the Russell 2000 rose 1.19%. Plus, the Nasdaq rose 1.64%. Tech stocks rose into earnings. Twitter, Apple, Facebook, Amazon, and Alphabet all reported after the close. They all fell after their earnings reports after hours except Alphabet. …
Another Good Jobless Claims Report
Solid Jobless Claims Report Again Even with all the COVID-19 mania and fears of a slowdown, the jobless claims report in the week of October 24th was good again. That’s 2 good weeks in a row. Seasonally adjusted initial claims fell from 791,000 to 751,000 which was below estimates for 758,000 and just 1,000 above the…
XLE Option Bottom Feeders Get Fed on Thursday
XLE Unusual Option Activity Report As the stock market was reeling into the close on Wednesday, a big fish entered the waters of XLE and took a large bite. That bit was a significant amount of option long call option contracts betting on a big move. The initial stages of a bullish move appeared on…
Is It Too Late to Hedge Your Portfolio Risk?
To Hedge or Not to Hedge A lot of questions from our subscribers came in yesterday about how to hedge and whether they were too late to do it. It’s pretty typical for investors to think about hedging as the sell-off is occurring or after its over. One of the important points to make about…
Investors Fear Renewed COVID-19 Outbreak
Brutal Correction On Wednesday Fear of COVID-19 exploding and new shutdowns finally got to the market as there was a major correction on Wednesday. S&P 500 crashed 3.53%. There was across the board selling. It was less of a factor day and more of a panic day. Microsoft’s earnings related decline took down the Nasdaq…
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