Daily Market Wisdom with Nick Santiago

1. Lots of negative chatter this week during options expiration. Yesterday, we heard that Senator Lindsey Graham introduced a bill to put sanctions on China. Then later, California said they will keep LA and SFO closed for 3 more months. Then we had Bill Gates' puppet Anthony Fauci testify in front of a Senate panel. He mentioned and gave a plug to Moderna (MRNA) a few times during that testimony....

Beware of Options Expiration Week - Nick Santiago 5/12/20 #32 1. Options expiration for May is Friday. The real Shark Week. This is a week of institutional game playing. Generally, this is a week where you will hear a lot of rumors, mostly untrue. You will also hear a lot of ridiculous upgrades and down grades by analysts. Also, stocks and markets that are sharply higher are susceptible to pullbac...

1. Today, the major stock indexes are staring lower. Traders and investors should expect choppy markets going forward. Just a reminder, markets do not go up in a straight line. They will do some backing and filling, this is natural. Typical ebbing and flowing. NASDAQ is up even while Dow is down. Right now, tech is the strong industry group. Financials are still struggling. This coming Friday is o...

1. Non farm payroll report released today. (April Non-farm Payrolls -20.5mm) While this is a horrible number, it is already factored into the market. Next months number will actually be more important since the economy is slowly reopening. 2. Closed Southwest option for a quick profit. All the airlines have good action today, we’ll see where they close. As stated before, Tech has been the leading...

1. Markets are higher this morning, but they have been choppy over the past few weeks. This is why chart recognition is so important. Earlier today, the weekly initial claims report was released and it came in +3.169 million new claims. This number was expected. The next few weeks will be important to see since the economy is starting to slowly reopen. I would expect the number to get better as lo...

1. ADP job report was released at 8:30 am ET today. The number was -20.36 million. This was expected to be a bad number. The service industry was down the most with a loss of 16 mm jobs. Just think about if the service sectors gets going again, a lot of jobs will be backk very quickly.  Service-providing: -16,007,00 Large businesses: - 8,963,000   Small businesses: - 6,005,000 Medium businesses: -...

1. The major stock indexes held up yesterday by the closing bell. This was a small positive after the negative Warren Buffett news that was released over the weekend. As you know, he sold his entire airline holdings and was very uncertain about the future. When markets go up despite bad news that is usually the ultimate bullish signal. It’s been up a few days, down a few days, a cha-cha. We’re see...

1. Warren Buffett is in the news today after annual shareholder meeting. He sold his stakes in the four largest U.S. airline carriers. I've never seen him sell out of a sector at the lows. I know he is good friends with Bill Gates, so maybe he is just trying to help his buddy accomplish his goal of the next Great Depression. He used to buy into markets in the past. In 2008, he was buying everythin...

1. Amazon announces earnings and it’s down 7% today. Stock hit a new all time high yesterday. Today it’s getting hammered. When you have this kind of run up you’re getting a buy the rumor - sell the news event. It’s trading 50% higher than it was during the March low. Nick warned all the members to get out. Parabolic moves require caution. It was a Pinnochio move. You’ll have to go to InTheMoneySt...

1. Markets such as the S&P 500, Russell 2000, and the NASDAQ Composite have rallied into resistance zones. This is where it will be critical to understance and recognize the patterns formed over the next week or two. Pattern recognition is extremely important at this time.  2. Yesterday, the FOMC (Federal Open Market Committee) concluded a two day meeting. The Federal Reserve basically said they h...

1. Oil surging today. Positive drug news from Gilead is helping the markets today. The stock has been going back and forth. Potential game changer. Crude is a direct beneficiary if the economy picks up.  2. Earnings are pouring in. last night Google (Alphabet) reported earnings that were better than expected and the stock is sharply higher today so far.  This is how the earnings season is going to...

1. June Oil (CL-M20) Falling again. This is coming because the USO has told everyone it is rolling out of the June contract and getting into the July contract and further out contracts. They should have traded in stealth mode and not tell the world.  2. Earnings season is in full gear this week. tonight we have AMD, Google, and Starbucks. All numbers are expected to be weak, but any surprises coul...

It’s Monday and time for another installment of Daily Market Wisdom with Nick Santiago 1. Crude oil plunging today. June crude is falling lower by 26% to $12.46/ barrel. Diamond Offshore (DO) filed for Chapter 11 bancruptcy protection. Believe it or not, there will be others to follow, this is what has to happen in order for oil to bottom. We’re starting to see economies around the country open up...

1. All eyes are going to be on the states opening up. We’re on pause right now as several states reopen. If the openings are successful, then it should lead to other states opening up as well. Georgia is the big one today. The studies look promising on states that never locked down. Either way, it will be very important to get the country up and running ASAP. 2. Today, President Trump will sign a...

1. Weekly jobless claims were 4.42 million. This is another bad number, but the market already new it was coming. Again, if the economy starts to open up this number will drop fast. The key is to get the economy going again. Four more states are opening up. Will we follow Georgia’s example. 2. Oil has rallied since the May contract sell off into expiration earlier this week. Oil is still weak, but...

1. June crude is bouncing, but a lot of damage has been done. The real peroblem now is in these ETF's. They are all restrucuring to stay afloat now.  Right now there’s no demand for oil. Once the economy gets started, assuming it does, we’re going to need oil and demand will spike. Right now there’s no place to store it. 2. Markets are bouncing today, but the close is more important than the open....

1. June crude (CL-M20) futures are plunging today. Yesterday, May crude went negative for the first time ever. The producers would pay you to take the crude from them. Of course this is only for commercial traders that can actually take possession. Once the economy opens up again. oil will catch a bid and a big bid. (Nick is sticking to October 16 USO $5 calls. They are actually down very little c...

Oil Crashes Again! 1. May crude oil plunges by nearly 40.0% this morning. The june contract is lower too, but by just 12.7%. The May Contract expires tomorrow. The decline in oil is certainly spooking the markets today as many small energy companies will likely fail and need to file for bankruptcy. Nick owns October 16 contracts on USO etf $5 Strike. Give yourself a lot of time on clock 2. The Whi...

If You Watch the News You’ll Go Broke Who would have believed after the crash how quickly the market would recover most of it losses. Is it a dead-cat bounce or is it a continuation of the prior bull market? Does it matter as long as you find a way to profit? Let's see what Nick's been up to. 1 Bought Hyatt Call Options yesterday, in at $2.20 closed out with a 36% gain. Nick's rule of thumb for tr...

Money for Nothing - Nick Santiago 1. Weekly jobless claims +5.245 million. This was another brutal number, but it was expected. A fair case can be made that it was exactly whatthe market expected. Hopefully, this economy will be opened up soon. S&P is heading sideways, volume has gotten lighter and it’s setting up for the next advance. There’s plenty of free 2. Earnings season is underway with mos...

1. Earnings from the big banks have been weak. Today, Bank of America  and Goldman Sachs reported earnings. Both are weak, but they have had big rallies recently. so this tells me that the stocks are just a sell the news event. I'll be watching the financial stocks for possible bullish patterns over the next week or two. JP Morgan is down. Goldman flat. BOA down 6%. They’ve had pretty good runs re...

1. Earnings season has begun with earnings from JPM, JNJ, and WFC. Earnings season will continue for the next 4 to 5 weeks. I dont think the numbers will matter much dur to the recent shutdown. Tomorrow we get more financial stocks reporting such as Goldman Sachs, Bank of America, Charles Schwab, Citibank, PNC, U.S. bancorp & United health. Earnings season is very cloudy and very bad. JPM is backi...

1. Oil production cuts from OPEC + is 9.7 million barrels a day. Crude oil is catching a small bid. Traders should wait for a chart pattern to form. The demand for crude is small right now wth the economy still being shut down. 2. Markets are now hopefull the economy can reopen in May. I think it can, but it will be in phases and in different parts of the country.   3. This Friday is options expir...

Nick Santiago is bullish but is of the opinion that 2020 is going to be a trader’s market. No more buy and hold. Nick has been bullish on the market since the Vernal Equinox (Spring). For the company week we’ll see a directionless market due to options expiry. It will be a week filled with games. The GDX is almost at 29, exactly where Nick predicted. Hotels are setting up to be a major score. We h...

Bailouts For Everyone Compliments of the Fed - Nick Santiago 4-9-20 1.   The Federal Reserve on Thursday took additional steps to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. The charts were telling us th...