Or was it the real economy rearing its increasingly ugly head every day that the average goes down, the dow slipped 102 points, s p shed 7 p. 8 , are we having Great Depression style unemployment 38 million jobless claims or another garden variety sell off in the wake of another major rally . Ill give you a hint its not the economy driving the bus. I know the markets incredible rebound the last two months seems totally out of sync with whats happening in the rest of the country. Wall streets become divorced from main street and were told thats unsustainable the thing is im not so sure this morning on squawk on the street, i kicked this idea around with david faber and carl quintanilla. David was incredulous i thought we were seeing a garden variety selloff, not some reckoning mass sell off in unemployment. Another 2. 4 Million People filing for jobless benefits this very week. Remember we get those claims thursday morning lets start with the positives that help stem the bleeding today
Name and its time to risk less and make more. Options action starts now. Welcome to options action, we begin with crude oil, and the wti rallying 25 as investors bet that the worst is over for the energy space our carter worth says hes got the chart to prove it. What are you seeing, carter . Well, a bunch of charts something that happened this week, seven weeks in a row, the Energy Sector is up and thats only happened eight times in the 32year history of the sector and the probability of occurrence of 0. 5 follow through is usually pretty big. So, first, what do we know we know that the sector bottomed actually before the market we see on the first slide here that the Energy Sector bottomed on the 19th, a thursday, while the market went on and made its low on monday the 23rd we know this ricochet has been huge and were talking about double the market and it dropped 65 and the ricochet up 25 is twice that of the s p up 34 and then this is the interesting thing. The next slide youll see
Revived trade war with china this time, the chinese are threatening to label some of our best companies as unreliable, meaning they wont be able to sell in the peoples republic. Then we got some mid retail Sales Numbers that werent just bad. They were grapes of wrath bad. But just when it looked like it would turn into a the buyers came right back. Plus, all sorts of Companies Keep reporting and telling us that april was much better than march, which bodes well for may. S p advanced 3. 9 . Nasdaq gained. What a turn. Now, that in mind, whats on tap for next week . Well, first, im dreading well come in on monday and hear about an escalation. The president s new containment strategy against china the market got hit earlier today because we are getting tough on huawei, the huge Chinese Company that the white house views as an unofficial farm of t unofficial arm of the communist party. There is a legitimate concern and if we give it to them, it is a security risk. Okay it its something he
And that would not be the weirdest thing that happened this week with tesla mike khouw downshifts on the name and its time to risk less and make more. Options action starts now. Welcome to options action,e wti rallying 25 as investors bet that the worst is over for the energy space our carter worth says hes got the chart to prove it. What are you seeing, carter . Well, a bunch of charts something that happened this week, seven weeks in a row, the Energy Sector is up and thats only happened eight times in the 32year history of the sector and the probability of occurrence of 0. 5 the followthrough is usually pretty big what do we know . We know that the sector bottomed actually before the market we see on the first slide here that the Energy Sector bottomed on the 19th, a thursday, and the market went out and made its low on monday the 23rd we know this ricochet has been huge and were talking about double the market and it dropped 65 and the ricochet is up 70 twice that of the s p up 34
States, again launching these initiatives right now to really unwind this process. By the end of the week the country as a whole will be 50 freer, if you will, or less locked down when all of this started. So that is a Big Development here. As people get back, a lot of them look forward to the memorial day weekend which they can see themselves going to beaches and the rest. The trend is share friend. Certainly concerner of wall and broad a very big trend at that. Well pick that apart with technology action, retail action, oil action. That has been dancing today. It is interesting to point out right now the dow and the s p and the nasdaq, forget about the nasdaq, already in positive territory on the year, it is not more than 5 from alltime highs, my friends, alltime highs. When you look at the dow and the nasdaq, they are respectfully down 13 , 9 , from where they started, when all of this was careening. Think about that, how much of a comeback the markets have seen. A lot of it built o