Daily Market Wisdom with Nick Santiago

1. Markets are trying to rebound from yesterday's stock market rout. Either way, this market is in a fragile state even if it does catch a near term bid. This Friday is options expiration for January so there is certainly a chance. 2. Yesterday, Microsoft (MSFT) announced a buyout of Activision Blizzard (ATVI) for $95.00 a share in cash. So while it sounds great on the surface, Activision (ATVI )...

1. Stocks under pressure to start this holiday shortened trading week. Rising stock yields mean lower stock prices for now. Yields are going higher no matter what. QE is gone. 2. Earnings season is underway. Goldman Sachs reported earnings before the opening bell and that stock is trading down by 8%. So far, we have seen a negative reaction in JP Morgan Chase after earnings and now Goldman Sachs....

1. Stocks dump out to start the week. Markets are now experiencing a down 'January Effect'. Technology (QQQ) stocks are leading the declines, but there is very little being spared. This should be a rough 1st quarter for stocks.   2. Bitcoin is testing that psychological 40,000 level today. Unfortunately, this level is now minor support and the 35,000 level is the next support area. So bitcoin trad...

1. Choppy and sloppy markets to start the year. Tech is slumping and the Dow Jones Industrial Average (DJIA) is now the leader of the pack. When the DJIA leads I'm always sceptical of the bull case. This is where money goes to be parked. Energy is strong 2. Gold has made a bit of a recovery yesterday and today. Remember, on Monday  gold was slammed, but it is trading up now so i will give it the b...

1. Everyone is looking for the 'January Effect' to take place. This is where the markets rally in the first month of the new year.  2. Bond yields are on the move today. Yields on the 10-year U.S. Treasury Note are up 9 basis points on the first day of trading in 2022. i'm in the camp that yields have a lot higher to go this year. The 10-year yield could reach 2.25% to 2.50% this year. 3. Gold is...

1. Markets are hoping Santa is coming to town this year. Stocks rallied yesterday reversing the Monday selloff. Today, they are basically flat on light volume trade. There is a chance we see a little more upside since this is a holiday shortened trading week and volume trends should be light. The bigger picture does not look so great for the bulls, but it's holding up momentarily. 2. Omicron news...

1. Stocks are selling off across the board today. There are several supposed catalysts for the decline including JowE manchin saying he will not vote for the Build Back Better bill. The truth be told, this market has been under distribution since November 22nd when the tech heavy Nasdaq topped out.  2. When easy money policies are enacted it is easy for the markets to move higher. When the easy mo...

1. It's Fed Day. The FOMC will conclude a 2-day meeting at 2pm ET today. The central bank is expected to accelerate its $15 billion taper. The rumor is that the central bank will increase the taper to $30 billion so we shall see what they actually do. Traders and investors like myself are now wondering how much of this is already factored into the markets. Fed Chairman Powell will hold a press con...

1. Markets are stalling a little today as they await the highly anticipated FOMC announcement on Wednesday afternoon. Last week, the markets rallied higher and this week should be a sloppy and choppy week. Remember, gold, the U.S. Dollar and bond yields can all be market movers after the Fed statement on Wednesday.   This Friday is also options expiration for December. It is a quarterly expiration...

1. CPI comes in at 6.8% for November. in October the CPI was 6.2%.  Today's number was the highest it has been since June 1982. Core CPI was up 4.9% year-over-year, versus 4.6% in October.  The bottom line, this was a hot number and it really puts pressure on the Fed. Next week, the Federal Reserve will announce its interest rate policy decision for the United States. They are likely to say that t...

1. Markets are stalling after a two-day short squeeze rally. This December has seen very volatile,  chaotic and unprecedented action for the month. Generally speaking, this is not healthy price movement and it warrants caution into the end of the year. 2. The omicron variant is now being viewed as mild. Originally, the day after Thanksgiving this variant was being hyped up like it was the mother o...

1. It was a rough week for technology. The NASDAQ Composite lost nearly 700 points this week. There are lots of tech names that are now in bear markets. Today, the Dow Jones Industrial Average (DIA) held up the best with a decline of just 40.00  points.   2. The financial stocks are starting to show major weakness and if that sector goes there are bigger problems on the horizon. This week, every r...

1. Up and down markets are now in play. Stocks are rebounding after yesterday's big selloff. Today is the start of the month and often the markets will see money flow back in at the beginning of the month. That seems to be what we are seeing right now.  2. Earlier today, the ADP job report showed 534,000 new jobs. This was close to expectations. This Friday the non-farm payroll report will be rele...

1. Stocks are rebounding a little after the Black Friday Collapse. There was some serious damage done on Friday and the chart pattern this week will be critical for traders and investors.   2. Bitcoin is also catching a big bid today as well. The popular crypto was hammered last week especially on Friday. As long as it stays above the 52,000 area there is nothing wrong. That level is key to hold f...

1. Markets are having a tough week since the Monday reversal selloff. Tech has been under pressure the most and that could be the case going forward. As bond yields move higher in the 10-year note more investors flee from the technology sector.  Seasonality trends are generally bullish from Thanksgiving to the New Year, but this time around traders will have to be careful and very selective into t...

1. President Biden renominates Fed Chairman Jay Powell for another term. This morning, President Biden renominated Fed Chairman Jay Powell to another term. Many investors and traders thought he was going to nominate Lael Brainard to the position as she is very far left. He did nominate Dr. Lael Brainard to serve as Vice Chair of the Board of Governors of the Federal Reserve System. Gold sold off s...

1. Today is 'Whipsaw Wednesday' and this is usually the most choppy session of the week before options expiration Friday. Rallies will often fade and sell-offs will usually recover with big bounces. Get ready for a day of chop. So far, this week's action in the market looks to be just a lot of options expiration related action and game playing by the institutional crowd.  2. Gold (GLD) and silver...

1. Its That Time Of The Month- Options expiration for November is this Friday. This tells me that this will likely be a week of institutional game playing with many of the popular stocks. Traders should watch for lots of rumors (mostly false), ridiculous upgrades and down-grades, and even some wild geopolitical events. Stocks that are in the stratosphere will often pullback and stocks in the gutte...

1. Markets ended higher again. I call this the Friday effect. Consumer sentiment plunged to 66.8, lowest level in 10 years. Volume remains light. It’s the reverse of the way it used to be before 2009. It’s options ex and bonus time is right around the corner. Beware. 2. Gold/Silver Silver reverse head and sholders means happy days are here again for silver bugs. Next week is options ex so beware,...

1. Stocks are holding up well today. It's another quiet session, but there are certainly stocks that are moving. Tesla (TSLA) is trading lower by 3.8% after Elon Musk put a poll out on his Twitter feed asking if he should sell 10% of his Tesla stock. This guy is the ultimate showman and certainly knows how to get a rise out of the Twitterverse. 2. EV maker, Rivian Motors (RIVN), is expected to go...

1. Jobs Report This morning, the non-farm payroll report was released by the BLS. There were 531,000 new non-farm payrolls in October. Non-farm private payrolls increased to 604,000. Wages rose 0.4% for the month and were up 4.9% from a year ago. Obviously, leisure and hospitality was the strongest area to recover. So this was another goldilocks number reported. It's amazing how that happens. 2. E...

1. Its Fed Day. At 2:00 pm ET the Federal Open Market Committee will make their interest rate policy decision for the United States. Obviously they are not going to raise rates, but they are expected to announce a tapering of the $120 billion a month of asset purchases. The rumor is a taper of $15 billion a month going forward. Then a rate hike comes late next year. We shall see soon enough if tap...

1. FOMC announcement This Wednesday the Federal Open Market Committee (FOMC) will conclude a two day meeting. The central bank is expected to say something regarding the time-frame for tapering its $120 billion a month of asset purchases. This meeting is probably the most highly anticipated meeting of the year. Ironically, it comes as the markets will usually rally on the back of seasonality trend...

1. Earnings season is in full swing we’re waiting for Apple. 2. Gold/Silver are holding their own. Gold is over $1800 and silver is hanging in there. It still has to overcome some nearby resistance points. 3. In the bond market there are no true bids. Aussie government bond yields skyrocketed when they announced the end of QE. Nick believes that taper is going to happen. Bond yields are not signal...

1. Earnings are in full swing right now. Last night, Facebook (FB) reported earnings and announced a big $50 billion share buyback, but the stock is still trading down by 2.4%. Alphabet (GOOG) and Microsoft (MSFT) report tonight after the close. Apple (AAPL) and Amazon.com (AMZN) are scheduled to report Thursday. Tesla (TSLA) becomes a trillion dollar company. It now carries more weight on the NAS...