Daily Market Wisdom with Nick Santiago

1. Weekly Initial Claims 1.508 mln vs 1.35 mln. while it is lower than a week ago it is still not a great number. Weekly Continuing Claims 20.554 mln -- prior was revised to 20.606 mln from 20.929 mln   2. Tomorrow is options expiration for June. So this is always a neutral trading week, and there can still be some game playing by the institutional money crowd. Overall, the trend is still up at th...

1. Institutional game playing for options expiration week and anything is possible. The Fed’s intervention is the primary market mover. Lots of liquidity being injected into the market. The negative is that when it gets taken away, the party is over. 2. The second most hated bull market in history. Even with all the new market entrants, the doom and gloomers are still getting their two cents in. T...

1. These markets are like the old weeble wobbles toys, they wobble but they don't fall down. That is what seems to be what is going on right now. This is still an options expiration week and traders should still remain on guard. Last week's high volume decline has not been exceeded yet. So far markets are holding up well. The reality is we’re above all the moving averages and that indicates that m...

1. We keep hearing about more spikes in coronavirus cases popping up around the country. While this could be happening, the market was already overbought and needed to pullback. In fact, last week, the put call ratio was giving me a very bearish reading. Even today, it is 0.80 which is still a very bearish reading. This means that there are a lot more calls in the market than puts. Remember, the p...

1. Yesterday's sell off was on heavy volume. At this time, it looks like a pullback from an overbought condition on the charts. Either way, when you get a high volume decline from a high you must respect it. It’s probably a minor pullback. It’s a healthy pulback. Central Bank intervention still going on. 4 day pullback after the high. A little caution. 2. Gold is flat and silver is down 2%. A heal...

1. Markets sell off this morning. This is likely due to a bunch of technical chart reasons more so than the reasons you will here in the media. Follow up to the Monday Rally, backing and filling. A.The SPY was overbought in the near term and trading into major resistance from Feb 25, 2020. That was a major sell off day with 218.9 million shares traded. This is after one of the greatest market runs...

1. There is an FOMC (Federal Open Market Committee) announcement at 2 pm ET.  The central bank is not expected to make any moves as far as interest rates, but their statements could move markets. Either way, I believe they will remain accommodative, but he might want to sound a little hawkish since we have seen a massive rally since the March lows. Not much more they can do right now. 2. May CPI w...

1. Markets are selling off today. This is actually good to see and welcomed after the huge rally that we just had. Pullbacks are healthy in order for the charts to continue to keep the current up-trend. Remember, parabolic moves are ending moves. 2. JP Morgan, financials, airlines, retail are down. Tech is all up today and they’re gaining as we speak. This tells us that it’s simply a pullback. We’...

1. Validity of Job Numbers isn’t relevant. The market is the final arbiter. No one really knows. Sometimes it’s a non-event and sometimes like Friday it isn’t. The ADP job report is much cleaner and accurate. Less incentive to fudge the numbers. Never believe anything government tells you. Bottom line is the market reacts. 2. Peter Schiff’s predictions have been very accurate. But he’s not a trade...

1. Bullish job report: May Nonfarm Payrolls +2.51 million vs -8.5 million May Nonfarm Private Payrolls +3.09 million vs -8.8 million May Unemployment Rate 13.3% vs 19.9% Largest monthly job gain in history. Is the Plandemic over? 2. A look at current trades and trades past. Nick closed out an option on Tyson Foods. Nick bought it during the panic over a potential food shortage. Up 52% in just a co...

1. Pursuant to Nick’s advice I bought Sept 2020 McDonalds (MCD) Calls. I’m up over 40 percent in less than 2 days. Now’s the hard part. Take the profit and wait for a pullback and then go back in or let it ride. 2. Nick had a nice profit in Rio Tinto (RIO). A small gain was taken and he’s cashed out half his position and is holding on for the next advance. Remember as they said in The Hustler, all...

1. May ADP Employment Report -2.76 mln vs -9.0 mln Goods-producing: -794,000 Service-providing: -1,967,000 Small businesses: -435,000 Medium businesses: -722,000 Large businesses: -1,604,000 This is much better than expected. Now we will have to see what is reported this Friday when the BLS non-farm payroll report is released.  How many of these people are actually enemployed from the standpoint 2...

1. Its amazing that just when the economy started to open up we get national rioting in so many major cities. This could be a short term setback, but it keeps our country very divided. This is really sad, but true. It was a solid Monday which means we’re going to do some backing and filling. Energy stocks are solid and so are the Financials. A lot of retail stocks are heading higher. 2. Good news...

1. The indicies are up across the board. Russell 2000 is again leading the way. The Financials are all up . You can’t trade the news, you’ve got to trade the charts. More important than anything is to be on the right side of the market. One would think that after all the rioting and looting that markets would all be down, but go figure. 2. Gold is flat, silver is up and it’s a powerhouse chart. We...

1. Press conference at 2pm Trump discussing China and Hong Kong and possible sanctions. Will they impose them? Bloomberg says Chinese finance sector could see some sanctions. Markets are jittery. Not a terrible day. Nasdaq is in the green. Dow, S&P and Russell are down today. Chinese ADR’s aren’t doing badly today. Main ETF for Chinese stocks is up .25 today. Chinese accounting is completely fraud...

1. Weekly initial jobless claims were posted at 8:30 am today. There were 2.123 million new claims. More importantly, continuing claims declined to 21.052 million from 24.912 million. So as people get back to work and as the economy opens up these numbers will get better. Continuing claims is the number to watch. 2. Money is rotating out of the large techs and into financial and retail. Macy’s is...

1. Yesterday’s rally is a continuation of what we’ve already seen. Market has been hot since the crash. Today Nasdaq is down. Technology stocks are under distribution. The XLK and the QQQ's are weak and trading lower right out of the gate. This area was the strongest and is now seeing a lot of selling pressure. At this time, it seems that money has rotated out of tech and into the financial stocks...

1. Dow broke 25k S&P 3000 and need to hold for the close and the week. 3000 on the S&P is a very important pyschological marker. Pyschology is everything. They’re looking at confidence in going into the market. Broad-based rally, Financials JP up over 5%, Citibank up 8%, they’ve been laggards. Airlines, energy hotels. Gold and gold miners are down. There will be more opportunities to participate i...

1. Markets closed positive into a long weekend. Light volume, no sell-off. We’ve reached a tipping point and people want to get back to work. Uprisings are taking place around the country. Politics is being trumped by economic reality. So-called medical experts telling the government what to do as far as the economy is concerned. Businesses are coming back quickly. 2. Very quiet day, nothing reall...

1. Weekly jobless claims was +2.43 million. This number is now decreasing and that is a good sign for a recovery. As the economy starts to slowly open up and people get back to work this number should fall even further.  2. Many retails stocks are holding up very well right now. Home Depot, Lowes, TJC Co's, BBY, WMT, COST, TGT and others are all doing very well. Just think about if the economy was...

The World May Be Falling Apart But Its Nice to See Huge Returns - Nick Santiago 5/20/20 #38 1. The economy is starting to open up more and more, but it is really due to the people demanding it. Some of these governors want to keep things closed and its for political reasons. The markets are recovering and so is the economy. The roads are getting busy again and people are going back to work. 2. Tra...

1. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin are going to testify in front of the Seante Banking Committee. That is the big news today. I do not think they are going to say anything that we have not heard already, but things are already political and you never kinow what can happen during these hearings. Chairman Powell was just on 60 minutes this past Sunday and...

1. The rebellion is on. People are done listening to the petty dictators and are restarting their businesses and lives. A total shutdown has never occurred in the history of the Country. Markets have gapped up. Market is cheering potential new vaccine. Probably no new highs for this year, but maybe next. Charts are telling us that the market wants to go up. Blue states are being challenged and wil...

1. Nick sold off his remaining position in SLV and made another 12%.He’ll be going back in after the resistance passes. We had a break in the S&P. Head and shoulders is still in place. If we see it close above above the neckline, then we could be in for a big increase. 2. Nick is watching the energy market. It’s come back with a vengeance. TX, FL and GA have had successful reopenings so we are loo...

1. weekly jobless claims +2.981 million new claims. Again this poor number was expected. Next weeks numbers will be more important since it will reflectthe opening of many different states.  2,Yesterday we triggered a bearish head and shoulders pattern on the SPY daily chart. This bearish pattern takes downt to around the 270.00 area. Currently the SPY is trading around 279.00 this morning. If thi...