Daily Market Wisdom with Nick Santiago

1. The S&P 500 Index is testing its September highs. In the short term this market  is overbought and due for a little consolidation before moving higher. Overall, it has been an amazing October rally and there could be more to go in the near term. Taper is a dream. 2. Earnings season is in full gear now. There are a couple of big tech blowups today. One is Snap Inc (SNAP).  This stock is falling...

1. Earnings report for TSLA tonight. Looking to retest the prior $900 high. It’s just a matter of whether it exceeds its new high. 2. Bitcoin new high after bitcoin etf. $40k was defended. It’s not going down to $27k or $20k in the near future. New all-time highs on the BITO ETF. It’s based off of Bitcoin futures. It traded over $1 billion its first day. More volume coming for Bitcoin futures. Def...

1. Today is Whipsaw Wednesday. This is the Wednesday before options expiration Friday. It is often a session where rallies will fail and sell-offs will see upside reversals. Expect a lot of choppiness today. 2. Gold and silver are on fire this morning. Gold futures (GC) look like they are on schedule to trade up to the $1800.00 level. Silver is trading up by 2.5% and both metals have similar patte...

1. Options expiration is this Friday. The markets sold off yesterday and remain very volatile today. We also have the start of earnings season kicking off tomorrow. JP Morgan Chase (JPM), Delta Airlines (DAL) and Blackrock (BLK) will report earnings tomorrow.  2. The  August JOLTS - Job Openings were 10.4million. There are plenty of job openings, now where are the workers? I was away this weekend...

1. Another big market drop to start the day. It's a broad based decline as leading sectors such as energy (XLE, XOP) and financials (JPM, GS, KBE) are trading lower. Technology is the big loser again with the NASDAQ Composite down 1.2%. Tech should be avoided now as it looks as if it is in full correction mode and it looks much weaker than everything else.  2. Today's big winner is crypto. Bitcoin...

1. Tech under pressure. This morning, the tech heavy NASDAQ Composite and NASDAQ-100 (QQQ) are under some selling pressure to start the trading week. Leading tech stocks like Alphabet (GOOG), Apple (AAPL), Facebook (FB) Amazon.com (AMZN) and many others are trading down sharply. The catalyst for the decline is the pop in yields on the 10-year note. Anytime yields tick up it looks like tech falls....

1. Stocks had a tough September - The markets have had a rough September. Almost every day over the past two weeks the market gave up their early gains. This is the running theme now especially for the tech sector. Remember, tech stocks are generally weak in a rising interest rate environment.   This is a Friday, so in the past this year most Friday's will get defended. I call this the 'Friday Eff...

1. Markets try to rebound from yesterday's bloodbath decline. Today, stocks are catching a bid after getting slaughtered yesterday. Yesterday's decline was led lower by the tech heavy NASDAQ Composite and NASDAQ-100. The semiconductor sector (SMH) was hit particularly hard. This important industry group carries a lot of weight in the market and I view it as the most important group in tech. Yester...

1. Money Rotation Today As yields on the 10-year note start to perk up towards the 1.5% level we see money leaving the tech stocks. Stocks like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and many others are all selling off today. Big cap tech hates higher interest rates.  The strength in the market today is in the small cap stocks. The Russell 2000 index (IWM) is up 1.3% today. Small cap stocks...

1. This is Fed day. The Federal Open Market Committee (FOMC) will make their interest rate policy decision for the United States at 2:00 pm ET. After the recent decline in the stock market everyone will be waiting to hear what Chairman Jay powell will have to say regarding his $120 billion a month asset purchase program. If he says he is going to taper the program the market could see more selling...

1. Markets Under Pressure Today, the major stock indexes are all falling sharply continuing its slide from last week. Remember, the major stock indexes ended sharply lower on Friday and gapped lower today. The news catalyst for the fall is being put on China's Evergrande, but these markets were long overdue for a pullback.  This is going to be an interesting week. We have the all important FOMC an...

1. Today is options expiration for September. It was another poor performance for the markets this week as the major indexes retreated. This market weakness is becoming a theme during options expiration. Also, the rare Friday declines that we see this year have also come during an options expiration week.  2. Next week there will be an important Federal Open Market Committee meeting. It's a 2-day...

1. Quadruple Witching Options Expiration - This Friday is options expiration for September. As you know, this is a quarterly expiration which is a quadruple witching options expiration. This means that there are 4 different asset classes expiring under the sun this week. It has been a volatile and choppy trading week so far and I'd expect more of it going forward.  2. Chinese ADRs (China stocks) a...

1. Options expiration for September is this coming Friday. It is a quadruple options expiration which means that there will be 4 different asset classes set to expire. This makes for a very choppy and sometimes volatile week. Remember, the volume trends have been very light in the major stock indexes so we could see a wild week out here. Watch for unexpected news, rumors, and ridiculous up and dow...

1. More Money Rotation - This market has become a game of Hot Potato. Today, we are just seeing more money flowing from one sector to another. Right now, I'm seeing some strength in consumer goods stocks like $Pepsi (PEP), Clorox (CLX), Hershey (HSY) and others, Energy is also upticking today. on the downside, tech is weak today. The semiconductor sector (SMH) is lower by 1.1%. This is not a big d...

1. This is the first day of September. Markets are trading mixed to start the day. Often, the markets will see some money come in to begin the month. At this time, I simply expect light volume into the end of the week as we go into the Labor Day holiday.  2. The ADP private payroll report was released earlier today. They reported just 374K new jobs, This was a big miss as the expectation was for 6...

1. Fed Chairman Powell pulls it off at Jackson Hole Federal Reserve Chairman Jay Powell keeps the markets alive with his dovish stance during his Jackson Hole Speech this past Friday. Stocks staged a pretty decent broad based rally. While the volume was light it did pick up a little and that should help markets in the near term. Mixed tape today. Dow flat, S&P and Nasdaq up. Russell down a touch....

1. It's the dog days of August. Volume in the $SPY has once again fallen off a cliff this week. That favors a buoyant to upside market. Simply put, there is very little selling pressure out here right now. Unless you see a real increase in volume we must expect the markets to hold up.   2. The big Fed Pow-wow is about to begin tomorrow. Remember, traders are trading lightly ahead of the big Fed an...

1. Market rebound after last week's options expiration decline. All of the major stock indexes are rebounding higher today recovering from last week's slight drop. This is typical price action from what we have seen this year. It seems that every time we see a sharp market decline everyone gets bearish very quickly. This leads to a short squeeze rally and that is what this looks like today. There...

1. Ugly trading week for the major stock indexes, but they are bouncing back today. Today is options expiration for August and this type of  whipsaw action is not unusual this week. Today's close will be very important when it comes to reading the charts. Volume was high, but not to the point of eclipsing the game-playing 2. Microsoft (MSFT) is the strong horse breaking out to new all time highs....

Today Nick and I kick off the day talking about retail: there are more earnings due out today, and it’s a big day for companies like Target, TJX franchises, Lowes, and Children’s Place. We also briefly discuss Bitcoin—which is down a bit today—but still around the 50% retrace area that we had discussed last week. Additionally, an analytics company that is fairly new to trading called Palantir boug...

1. The takeover of Afghanistan by the Taliban. This is really the talk of the town this morning. This does not affect the stock market directly, but it makes traders and investors question their confidence in the current administration. I personally believe the Federal Reserve controls the market action with their current QE $120 billion/month program.  2. Options expiration for August is on Frida...

In today’s Daily Market Wisdom, Nick and I catch up on numbers and the action in today’s market. We see money rotating from one sector to another—almost as if playing a game of hot potato. We discuss CPI number and Bitcoin, and continue to analyze our metals in the rapidly changing market. Tune in to get a dose of market analyses and to start your day with valuable insights. Notes -Today’s market...

1. Bitcoin is the new gold. Bitcoin is catching a bid pop today as it trades back to $45,000.  Bitcoin is jumping after United States senators reached a compromise on how to tax crypto assets. This is part of the $550 billion infrastructure bill. This still has to be voted on, so the market seems to like the news right now. All of the leading stocks that have crypto exposure are also up big today....

1. Hot Job Report. Earlier today, the nonfarm payrolls increased by 943,000. This was slightly better than expected. The unemployment rate slid to 5.4%, compared with the 5.7% expectation. So this was a good report on the surface. Remember, earlier this week the ADP job report was much weaker than expected, so today's report is a big surprise. Dow up slightly, Nasdaq is getting hit. Russell 2000 i...