Is The Economy Set To Tank In November?
Worries Are Here Even though firms literally just reported great earnings this week, worries are back because traders believe Q3 is meaningless now that the economy is worsening. That’s true to an extent. The economy will be in worse shape in November because of COVID-19. A difference between investor fears and these earnings reports is…
Hasbro, Inc (NASDAQ: HAS) Sees Surge in Long Put Activity
HAS Unusual Option Activity Report Hasbro’s share price fell 9.3% following the company’s earnings report on Monday before the market open. The price has been searching for support the past couple days, but Wednesday’s option activity is pointing to additional downside. HAS Seasonality In a statement on Tuesday, Hasbro CEO is optimistic about the company’s…
What does the VIX say about an S&P 500 Bottom?
S&P 500 Bottoming is a Process The S&P 500 has been searching for a tradable bottom since the sell-off following its September 2, 2020 high. The best way to describe the price action since that point has been “listless.” Without the drivers of stimulus and Federal Reserve policy easing, stocks have failed to find adequate…
COVID-19 Trade Is On... For Now
Another Big Selloff For Small Cap Value COVID-19 trade is on which means large cap growth will outperform small cap value most days. Tuesday was an ok day for large cap tech and another disaster for small cap value. Bad COVID-19 data suggests this will continue, but good vaccine news can change that immediately. It’s…
Shutdowns Are Back As Cases Rise In France and American Midwest
Vaccine Seems So Far Away Later in this article, we will discuss the latest COVID-19 numbers. In this section, let's discuss the lockdowns. Lockdowns appear to be spreading like March. Except for the fact that we don’t have a fiscal stimulus coming. And we know the impact COVID-19 has in the short term on people’s…
Earnings Week: What to Expect from Monsters of Tech
Tech Earnings Preview This is a huge week for the market as over 20% of the S&P 500 market cap and over 45% of the Nasdaq 100 are set to announce earnings this week. That may sound like a lot of companies, but it’s not. Just five companies make up that amount of value! It…
Cisco Systems Price Fades as Call Option Buyers Step In
CSCO Unusual Option Activity Cisco saw its price fall over two percent on Tuesday as it broke its $37.60 support. The high volume selling masked a big day in the options market for the company. The juxtaposition of a falling share price and bullish option interest is an interesting combination as the price marches lower…
Big Monday Decline As COVID-19 Cases Rise
Monday Blues The stock market had a rough Monday, although it did rally solidly off its afternoon low. S&P 500 fell 1.86%. It increased 1.06% from its low at 1:35PM. It’s fairly common to see the market bottom between 2:30 PM and 3:30 PM on big down days, but this bottom was earlier than usual. …
Air Travel Might Be Weakening Again
New Home Sales Actually Miss Estimates The impossible happened. A housing data point missed estimates. New home sales in September fell from 994,000 to 959,000 which significantly missed estimates for 1.016 million and the lowest estimate which was 1 million. Furthermore, the August reading was revised lower from 1.011 million. The chart below shows this is…
Wells Fargo Attracts Speculative Bullish Option Interest
WFC Unusual Option Activity Report You wouldn’t typically be thinking bullish thoughts as a company like Wells Fargo & Co (NYSE: WFC) falls 2.75% and is testing its 52-week low. However, these are not exactly normal times and WFC has been a significant underperformer within the banking space. The unique position that it finds itself…
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