04-APRIL 21-2021

GuessGood morning.
Investors often follow the price of a stock to determine if there’s an uptrend or downtrend, and if there may be a potential change that can result in profits.  But other trends are key to watch as well.  One such trend is stock flows.
The first quarter of the year saw record inflows into the stock market.  It also saw the creation and popping of mini-bubbles in retail stocks, special purpose acquisition companies, and the tech sector before a selloff there on rising interest rates.
Now, investors are starting to flow out of stocks, which could lead to more of these mini-bubbles bursting, or even a market pullback in the months ahead.  That comes after the S&P 500 closed last week at one of its rare overbought readings.  The drop in the market so far this week may be the start of the next mini-correction of 10 percent or so over the next few weeks.

Gold currently at $1,780.51, silver at $25.93

Now here’s the rest of the news:

Stimulus Payments to Americans Are Stimulating China’s Economy –Larry Kudlow,Fox Business News
The $3 trillion stimulus led to consumer spending, massive Chinese growth and exports and a larger U.S. trade deficit with China than ever before… [Read Here]

April 21, 2020

As Employee-of-the-MonthGood morning.
It was a weird feeling on Monday morning seeing the expiring futures contract for oil trade at $11, but it got even weirder as it began trading in negative territory just before close.  While this is certainly bearish for oil, the active oil futures contract finished at around $21.50.
The issue is that nobody wanted to finish the day long the expiring contract as there is virtually nowhere to store the oil once delivered.  This is such a crazy time in the markets as these occasions clearly point out how illiquid things really are.

YES!!!  Coronavirus finally got kicked from the headlines…

Yesterday, the crisis in the oil market took center stage.  With demand falling, capacity filling up, and a bit of wonkiness in the futures market, prices actually went negative on Monday.  Oil prices won’t stay negative, of course.  And I’m sure you are wondering where they’re headed next.  But the more important thing is what this decline means for the companies that produce it.
Unfortunately, oil and gas producers are tied to what they sell.  It’s that simple…
If oil prices fall below a certain level, oil producers run at a loss.  And eventually, some of them will go out of business.  There’s no way to get around it.  And no matter where oil settles after this week’s crash, that’s the reality many oil producers are facing today.  The cost to produce oil is higher than what they can sell it for.  The entire sector is in a massive downtrend as a result.  And history says those lows could lead to double-digit losses from here.

April 21, 2019

(nil)

IMG_0712
Come From Aways, Do You?

More Posts

07-JULY 26-2021

Good morning. As much as Wall Street loves rumors, Washington DC is the major league.  The latest rumors are that Federal Reserve Chairman Jerome Powell might not be nominated for a second term to lead the Fed.  While his tenure has been little different than his prior two predecessors given the crises he’s had to deal with, some progressives don’t think the Fed chair has done enough on income inequality and other matters. That could lead the White House to find a more radical leader for the central bank, potentially even one willing to embrace the latest economic theories such

07-JULY 25-2021

Here’s to a better YOU … and now … Today’s DarrenDaily Recap Sunday.  A collection of the weeks videos from Darren Hardy.  Enjoy! Naturally beautiful: Waves Crash Across the Rocky Shore. … I’ll watch awhile!. July 25, 2020 David Newman suggests YOU Grow Your Business with a Book! One of the fastest ways to grow your business (especially now) is with a book that positions you as an expert. Why? Because as opposed to webinars or events a book gives your prospect instant gratification.  They are able to download it and consume it the exact moment they see it. So

07-JULY 24-2021

Letting Go Of Guilt “Guilt can stop us from taking healthy care of ourselves.” –Melody Beattie Guilt is like a rock.  It sits in the pit of our stomachs and can weigh down our every thought, behavior, and action.  It can distract us all throughout the day and keep us awake at night.  Our muscles work overtime just to carry it around, and yet we still hold onto it. It’s imperative that we stop feeling so guilty. That’s not to say that you shouldn’t feel guilt.  True guilt is a loving instrument from Spiritual Guidance used to convict, correct, and confirm your

07-JULY 23-2021

Good morning. Technology companies need to constantly innovate.  That results in a high amount of money being spent on research and development, which in turn helps keep a company’s taxes lower than a company that makes the same product year-in, year-out. So it’s no surprise that regulators are always on the lookout for ways to try and get more taxes out of these massive firms that often have little to no earnings.  One proposal is being floated for a new generation of technology: a space tax.  Or, more specifically, a per-passenger tax on space flights like the ones just completed

07-JULY 22-2021

Good morning. The rise of retail traders over the past year has likely saved a number of companies from bankruptcy, or helped bankrupt companies bounce back and exit bankruptcy faster.  That’s created a lot of interest in finding short squeeze stocks for big, fast profits.  It’s also driven traders into options to play the trend as well. One area can also be at play for big bucks: Corporate bond markets. Case in point, 2026 bonds for AMC Entertainment (AMC) traded as low as 5 cents on the dollar last year, but have no rallied back to par.  Buyers would have

07-JULY 21-2021

Good morning. Investors sometime take a very binary approach to stocks.  They’re either all-in on a position, or they’re in cash or a different trade.  Rather than buy all at once, however, astute traders know when to average in.  As long as a company’s prospects don’t fundamentally change, this move allows investors to still have the option of cash, with the ability to buy more shares of a company when the market declines. So while Goldman Sachs (GS) recently warned clients not to buy Monday’s drop, retail investors saw a dip to buy instead.  With stocks hitting resistance at their

07-JULY 20-2021

Good morning. The stock market was in freefall Monday, much like a mini-version of its March 2020 decline.  Is this the next big sell-off?  Probably not.  Monday’s fears, based on rising mask mandate re-impositions and a few select lockdown threats around the world, are likely being overblown. In the meantime, the bigger market concern is whether or not the current economic growth is sustainable.  The facts are that it will likely slow.  Not the best news, but not the worst news either.  And inflation expectations continue to rise.  But with a lumber market shouting “timber” as it comes back down

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment

Send Us A Message