Headlines hit on the coronavirus. New york city is halting all inperson learning starting tomorrow it comes as the number of coronavirus cases and hospitalizations are skyrocketing nationwide. And a new all time high for s p. We have a Record Number of cases of covid in america and retailers are hitting an all time high. How can this be . The haves and havenots kudos to karen and tim target numbers were extraordinary. It should come as no surprise. Thats a name we have talked about. If you love walmart at their valuation, you have to love target at theirs walmart quarter i thought was very good. There are a lot of good individual stories, but i dont think it speaks to the economy per se there are names we also mention that seem to be topping out. The price action in restoration hardware, William Sonoma and we dont need to go down the road of what they sell. Those stocks popped out a couple of weeks ago thats concerning. Do you want to play at the 100 earnings table, gap earnings on the
Well be on and bridge you all of the bring you all of the big headlines. First the november to remember dow surging towards best month since january 1987 s p and nasdaq handing in best work since april energy up more than 25 percent financials up more than 17 percent. Small caps, best month ever. Bulls werent hiding, check this out, each of the past four monday he got big vaccine news before the market open and look at diminishing returns, the market fell despite moderna requesting emergency use of its vaccine. So weve been talking talking black or white or red and green in terms of diminishing returns. I took that economic class my freshman year and learned all about diminishing returns which is why i often invoke it here, i think so, absolutely tell you something, the vix is telling another story. I thought a day like today, monthend i thought the vix would close closer to 25 but here it is closing lower on the day, maybe its a function of that specific security, but ill tell you giv
Nasdaq declined. 82 there is only one thought. Good, they all got a chance to buy. Not long ago on days like this we say oh boy, i got to get out of here while it is getting good who knows what it is going to happen with this thing it is going to roll over now we often see pull backs like this as opportunities that are too precious to swander. How do we explain the new mindset . I think because we broken the tyranny of the indexers. When the fed says something positive or when we get solid employment number. Either way, we were in the throw to these big macro events. They control everything. Not anymore. These days macro does not matter very much. And etf buyers have stopped reacting to this stuff instead they react to the opportunity so when stocks come down, these people step up and actually start buying, make it much harder to have a hideous selloff you know what there is nothing new about this less lock steps opportunity mindset. This was the old new normal of the index funds 20 ye
But in a good way. Plus, even when other battles end, you still cant fight the fed. So professor coe has another shield to protect yourself with. Options action starts right now. Lets make more lets get right to it. Despite everything that has been happening, what a week it has been health care has been flat lining for much of the year but carter thinks its time to yell clear carter, you are a doctor your prognosis lets see what it is. A couple of tables and charts. The first. What we know is sometimes one day says a lot what was the best performing sector the day after election day . Health care. Are there reasons for that sure maybe because obama care is less under pressure maybe there will be less regulatory pressures for drug stocks but this week its the second best performing sector only to tech take a look at the next table. Is it a good sector . Of all sectors, it has the strongest top line growth of all sectors in the past three years. How about valuation . Look at the next tab
Populating wall street are a bunch of weather man everyday you hear the forecast today the dow slipped some points nasdaq declined 1. 2 it is enough to make you take a meteorologist course to see which way the wind blows seems like both ways blowing at the same time. The tail wind dies and the market goes right back down again. You dont care about todays weather, what good is that for you on the forecast . It is easier said than done. How do you navigate your way through the confusing markets. Starting with the winds from the vaccine. We know it is a huge tail wind for the economy. Once people are vaccinated, we can open everything back to normal and more restaurants and retailers will make it and there will be more jubilation. The jubilation that kohls got underneath its stocks and malls can reopen and troubled retailers can be able to shooure and macys the younger robin hood traders are betting heavily on the cruise line, between the vaccine and soon enough well be able to take a cru