Daily Market Wisdom with Nick Santiago

1 Markets down across the board. Started out with a Nasdaq sell-off. And we’ve pulled back more. It’s coming under distribution. It’s up 16 percent for the year, so a pullback isn’t really surprising. It’s a healthy move. We’ll see how the rest of the indicies fare. Intel reported bad earnings. Tesla is down to 1400’s. Tesla could be another buy the rumor and sell the news stock. For now it’s dead...

1. The Weekly Initial Claims upticked to 1.416 million. Last we we saw the Weekly Initial Claims at 1.30 million. The Weekly Continuing Claims declined a little to 16.197 million from a revised count of 17.304 million. Either way, there is still a lot to do to get these numbers to improve. $600 per week bonus ends shortly. New package will eliminate or reduce this “bonus.” 2. Earnings season is in...

1. Earnings are starting to pour in. Tonight, everyone will be watching Tesla earnings. If the company can report another profitable quarter it will qualify to get into the S&P 500 Index. That means that many fund managers will be forced to buy the stock as part of their portfolio. Microsoft, Las Vegas Sands and Whirlpool will be the big names reporting earnings tonight after the close.  2. Tesla...

1. Markets are trading higher to start the day. Today's close will be very important when the markets are up this high. I never like gap higher opens when markets are close to breaking out. Often, the gap higher open can lead to a gap and crap pattern. So far, that is not the case today. Nasdaq is down, where will the money go? Is it fleeing or going to other sectors. 2. Oil is ripping to the upsi...

1. We have a mixed session today with the tech heavy NASDAQ trading higher and the other major stock indexes trading lower. Earnings season now kicks into high gear this week with 100's of companies reporting earnings this week.  2. Here's a great example of how stocks work. Most of the leading vaccine stocks for COVID-19 are falling today after PFE/BNTX (Pfizerr and BioNtech)  and Astazeneka (AZN...

1. Market has been quiet since before noon. Typical options ex. Sideways move, nothing major. Most indicies are flat. For Monday, you never know what you’re going to get. Market is prone to a down move and then we’ll see from there. 2. Stocks can be all over the map to assure that retail option traders don’t have to get paid. Weekly options are a bad move. Not enough time to make money. May be oka...

1. Today's Weekly Initial Claims was 1.30 million. The Weekly Continuing Claims was 17.338 million.  The prior number was revised to 17.760 million from 18.062 million. So things are improving, but they are still slower than everyone would like. Slight improvement, not a bad sign for the market, it’s climging the wall of worry. 2. Earnings season is underway this week with mostly financial stocks...

1. Markets are starting the day sharply higher after a positive reaction to Goldman Sachs earnings and positive news to a coronavirus vaccine by Moderna(MRNA). It seems that the markets are screaming for a vaccine to come to market. Either way, the trend is up. 2. Economic landscape dreary but the market is telling us that the lockdowns are going to end. The charts down lie. Be sure to tune into N...

1. Markets reverse sharply lower yesterday afternoon after California Governor Newsom closed indoor businesses. This news sent the markets tumbling late in the session yesterday. Remember, the state of California is the 5th largest economy in the world. This type of thing happens every options expiration. 2. Bank earnings are starting to be reported. Earlier today, JPM, WFC and C all reported earn...

1. Options Expiration week, markets are up today. Nasdaq is going higher even while cloud softeware companies are down. Amazon and Apple are way up along with Tesla up to $1763. Short squeeze underway? Trade real companies, trade real stocks. You need to be on the right side of the tape. They’re soon going to be on the S&P500 and they’re perhaps getting frontrun. Games will be played. Markets can...

1. Options expiration for July is next Friday. This usually means that next week is a time for a lot of institutional game playing. Tech has been the strong industry group so many of those parabolic stocks are vulnerable to declines next week. Some pullback candidates include AAPL, AMZN, TSLA, SHOP, MSFT and many others. 2. Earnings season kicks off next week. The big bank stocks will be the first...

1. The Weekly Initial Claims 1.314 million vs 1.350 million, the last report was prior revised to 1.413 mln from 1.427 mln. The Weekly Continuing Claims 18.062 million, the prior report was also  revised to 18.760 mln from 19.29 mln. Either way, these numbers are getting better, but still need to improve. This will take more time. 2. Next week is options ex. The Thursday before we’ve been seeing a...

1. Yesterday, markets declined which is typical after a Monday rally. Often, we will see a lot of backing and filling throughout the rest of the week. Bottom line, the trend is still up. When you look at different industry groups, tech has been the leader and doesn’t do much backing and filling. The easy money has been made. 2. Homebuilder stocks are strong today. The charts in this sector are hol...

1. Markets are starting out a little on the weaker side today. This is common after a big Monday advance like we saw yesterday. There could be some more backing and filling throughout the rest of the week.  2. There is a lot of talk today that Miami-Dade is closing restaurants and gyms due to the virus. Melbourne, Australia also ordered a six week stay at home lockdown. Its this type of news that...

1 They can’t put off the reopening much longer. Why are we shutting down the economy? The numbers have been sketchy from the beginning. We know that the numbers are all fuzzy. 2 Market today. Pretty good start to the week. Broad-based rally, tech still leading, Nasdaq up 2%, retailing up, mining up and the financials. Good to see money going into other sectors besides tech. Narrow based rallies ar...

1. The non-farm payroll report takes center stage today. June nonfarm payrolls increased by 4.800 million vs expectations of 3.5 million. June Unemployment Rate is 11.1% vs 12.6% Now the Weekly Initial Claims report was higher than expected with 1.427 million vs 1.355 million. So it's not all positive out there. A lot of this is due to people not wanting to come back to the workforce because they...

1. The ADP Employment number was released this morning. It showed a gain of 2.37 million.   Small businesses: 937,000 Large businesses: 873,000 Goods-producing: 457,000 Service-providing: 1,912,000 2. Tomorrow, the BLS non-farm payroll report will be released at 8:30 am. Lets see the reaction from the market. If it follows the ADP report it should be positive for the markets. 3. FedEx (FDX) also r...

1. Semiconductors are strong today after earnings from Micron (MU) and upside guidance from Xilinx (XLNX). This is certainly helping the tech sector today. As a rule the semiconductors are a very good leading indicator. As long as the semiconductors hold up the Nasdaq quill usually do well. If the semiconductors roll over it is usually problematic for the tech sector.  2. This is a holiday shorten...

1. Markets dropped sharply on Friday in a broad based decline. This tells us that the markets are still in retreat mode from the June highs. Right now, this looks like a pullback from a big advance off the march 23rd bottom. Obviously, there are lots of reports about an increase in coronavirus cases and many investors are worried about another economic shutdown, but this time around I think it wil...

1. Unemployment continues to gradually decline. rends are getting better. Covid uptick. With states opening and riots and demonstrations all over the place and it’s obvious. Death rate is continuing to decline. Hospitalizatons are up slightly. 2. Everything is down across the board. We’ve been pulling back on the S&P since June 8. Financials are down. JP down 5%. Right now we’re in pullback mode....

1. Nasdaq new high and now pulling back now along with the other indexes. Market has had an amazing run and is now pulling back. 2. Virus expands and that’s rattling the market. It’s probably a false blip among younger people and we won’t see much lasting results or a second shut down. 3. A lot of opportunties in the sectors we’ve been following. Housing is pulling back. They’ve had great runs but...

1. Markets are coming under pressure after the increase in COVID 19 cases. I believe the markets need a breather after such a big run up since March 23, 2020 low, so sometimes the market needs a reason to take profits and the media needs to tell us why.  Down down over 400, Nasdaq down over 100. Profit taking coming out of every sector. Since June 8th we’ve just gone sideways. 2. Yesterday, there...

1. Gold and silver still going up. They’re strong gold have another good yesterday and is up today. Nick’s been waiting to get into gold. Silver has a lot of room to run. Futures are trading at 18.05. Next big resistance point is 23 and then 25. Once it gets going, it’s going to get interesting. The longer you have a base, the higher it can go. 2. Wild overnight session based upon Peter Navarro’s...

1. Last week's options expiration is now over. That is always a time to be more on the neutral side. So this week it’s important to really see what kind of chart patterns are forming on the charts. This really means individual stocks, sectors and indexes. So now the real work begins. 2. This week Nick will be watching the airline stocks very closely for positive chart patterns to form. Right now i...

1. Sideways is the by word. Markets have had a great run but now it’s stalling. No records getting set this year. Nasdaq is becoming the leader. All the Fangs are dominating. The Dow might not seem relevant now, but things have a way of working out that no one foresees. 2. Gold is putting in the mother of all bullish patterns. Same with Silver and this could easily breakthrough the 2011 tops. It c...