Morning Comment: What is the Nasdaq's Recent Action Telling Us?


Political games by Democrats in Congress created yet another substantial decline in the U.S. stock market yesterday as the DJIA and S&P 500 fell about 3%. Don’t get us wrong, we do believe that “emission standards” are very important for our environment, but trying to add a provision on this issue for airlines to the virus relief package at the last second was pure politics. Playing politics at the time of a national emergency is inexcusable.

Now we have Speaker Pelosi rolling out her own stimulus plan. In other words, it's pretty obvious to us that the Democrats are delaying this process because they want to make sure that President Trump doesn’t get all the credit for any positive resolution to this national emergency. They sat on their hands at the height of last week’s problems…and now they’re trying to play catch-up. (They sat on their hands so that they could play the “blame game” later on. They thought President Trump was going to shoot himself in the foot. Now that the Trump Administration and the Fed have put forth powerful plans to deal with this crisis…while the Democrats sat on their hands…the Dems have shifted their strategy from the “blame game” to the “taking credit game.” They want to be able to take some credit if things work-out well…which they could not have done given their actions in previous weeks.) Usually we’d say, “That’s politics.” However, in a time of national emergency, we call it irresponsible.

Anyway, we disagree with those who are saying that it is too early to start buying stocks. As we have stated several times over the past few days, we do NOT think this is a time to jump back into the market with both feet. However, holding off…and trying ...

Read More
Comments

Morning Comment: Can the Markets Actually Rally into Quarter-end?


We are all going through something we have never gone through before, but that doesn’t mean that history does not repeat itself. During financial crisis…when the markets were falling out of bed and on the verge of melting down…Congress played ...

Read More
Comments

BA & XOM.....Wow, these stocks are incredibly oversold.


This morning we highlighted how Boeing (BA) has become very, very oversold. Of course, BA was already facing serious problems before the coronavirus breakout took place, so it’s incredibly tough to try to pick the exact bottom for this stock ...

Read More
Comments

Morning Comment: Will the U.S. Follow Europe?


WHAT AN UNBELIEVABLE DAY YESTERDAY!!!!! Tom Brady decided to leave the Patriots!!!!.......Oh yeah…the stock market rallied 6% too after a large fiscal plan was proposed….BUT TOM BRADY LEFT THE PATRIOTS!!!!!

Of course, SOME people will try to say ...

Read More
Comments

Morning Comment: Panic At Your Own Risk


  • Are “the authorities” causing a panic?
  • The reaction is so much different that it was after 9/11.
  • Despite turning bearish earlier than most, we’re actually not as bearish as a lot of people this morning.
  • Signs of capitulation and ...
Read More
Comments

Exxon (XOM): Incredibly Oversold


A very smart person we know told us he bought XOM yesterday. He did not follow that up by trying to sell us on this fact, so he was not “talking his book.” He simply stated the fact that ...

Read More
Comments

Morning Comment: More Than a 1-Day Bounce This Time?


In our Morning Comment yesterday morning, we highlighted several signs of capitulation that we were observing. We also said that although a near-term bottom might not come immediately (Thursday), we did expect one to begin very, very soon. Well, we ...

Read More
Comments

Morning Comment: The Stock Markets Reacting the Way it Should


The news that the Trump administration was going to come forward with a fiscal stimulus plan that includes a payroll tax cut (and maybe even some relief for the energy industry) helped the stock market (which had become quite oversold ...

Read More
Comments

Morning Comment: It's About the Credit Markets Now.



Well, we just got a true shock to the stock market. As we said over the weekend, stock investors had several weeks to react to the outbreak of the coronavirus. The moves in other asset prices (like gold and especially ...

Read More
Comments

Thursday midday Comment: Short-Term Support/Resistance



The S&P 500 Index is trying to hold its 200 DMA (which is just above 3050). To be honest, the 200 DMA didn’t provide much support in last week’s late-week decline…and didn’t provide a lot of resistance on the days ...

Read More
Comments

Morning Comment: Credit Spreads Are Still Raising Concerns


  • Nice “Biden rally,” but a short squeeze provided A LOT of fuel as well.
  • Despite the rally in stocks, Treasury yields and gold prices did not respond in-kind.
  • We also did not see much of a tightening of credit ...
Read More
Comments

Midday Comment (very quick)


Our call for a sharp short-term bounce has worked-out very well so far. The S&P now stands a full 6% above its intraday lows from Friday! However, when it got up to its 200 DMA today, the S&P stalled-out. Therefore ...

Read More
Comments