Get smoked thats the lesson in todays market where the dow rallied 150 points. S p broke out of the down trend gaining. 87 . And the nasdaq jumped 1. 03 . As we saw real glimmers of hope that the market might be getting over the post alibaba hangover. We usually get this kind of snap back action when sellers have been relentless in their unloading. And one day it turns out that theyve finished selling. And the endless stock supply theyve been providing and knocking the market down with just dries up overnight. Thats what happened. Remember, i talked about the lockin factor last night. Meaning when hedge funds lock in their gains sell, sell, sell. Near the end of the year because theyre beating the market. One of the big secrets of the Money Management business is the notion of secrecy itself. Meaning the need you have as a broker to keep your clients orders secret. Typically, People Like Us when were watching the tape underneath your picture, we dont know when someone, some large insti
Even keel with the dow dipping 18 points today. S p edging up 9. 2 . Nasdaq advancing 1. 8 . Will it stay this way . I think it could depend on what happens this weekend when the g20 meets in brisbane. This conference represents the first time that the true antagonist the ukrainerussia conflict sit down. And perhaps some sort of path to peace can go down. Lets put it another way, though. If you go through my tenpoint checklist, the cessation of hostilities in ukraine was on the list. We get any resolution at all from this australian confab and it will set the stage for still one more run to new highs next week. Without it, though, we could come in on monday morning with the s p futures turning down. Consider this g20 meeting as less of a photo on and more of a substance session. In other words, sorry, we have to care about it. You cant leave the meeting to sad son. Whats on tap after the g20 meeting . This is the week retailers report, so we have to be attuned to the oil markets, becau
Market. For once the market reacted positively, not negatively to objectively good news and tempered its excessive negativity which is how the dow managed to rally 213 points and s p climb 1. 16 and nasdaq jump 2 . What do i mean by rational reactions to actual positives . How about concrete tips . I have argued that what is freaking people out and making them panic out of all stocks is not the downward direction of oil but the velocity of the move. I think oil can keep going lower because there is too much produced. When oil pauses in decline as it did today we see investors come out from the sidelines and rationally buy the stocks of companies that benefit from Lower Energy Costs including the consumer Package Goods names, the retailers and restaurants. Im going to give you a list that you love later in the show. For years the price of oil had been held up not by demand but by a cartel. Opec. When a cartel is busted up thats good for all consumers, even as it is naturally terrible fo
For just about everyone else. Which is why the dow tumbled 105 points today. S p lost 0. 61 and the nasdaq climbed up. First a word about leadership. I learned about this from the Television Show that got me interested in the wall street to begin with walk street. There was a funfilled review of the week and the panelists revered, and theyd opine about leadership groups. Its where i first heard cyclicals although lou would say, that sounds like a washing machine, speak english and marty would say that companies with earnings improve when the economy gets better and deteriorate when it gets worse. I try to model myself on lou. At the same time i didnt want the show to be dumbed down too much so i would like to listen to the concepts like the generals that they talked about all the time. The generals. The stocks that led the market forward and tried to judge whether the leadership was meaningful longer term. Some groups make better generals than others if you want to deviate from the mil