Market Review
Using the context of the new administration, who can do no wrong and what’s going on in the offing events tied to the earnings season? Here’s how I saw yesterday’s market using the principles of Wyckoff and through the eyes of WB.
The stimulus is coming. Sure, we don’t get $2K as promised in the campaign speech, it’s been whittled down to $1,400 with limitations on the rich. Mom was not happy when she heard that. She said; “That does not come close to compensating me for being locked up in the house for a year and not being able to go to church on Sundays…”
I’m going to make this short and sweet.
There are several reasons for the current downdraft in the stock market right now. The first is how overextended the stock market is, the second reason for the weakness is the reliability issue of the Covid-19 vaccines, the third part is GameStop Corp and AMC Entertainment Holdings Inc which is now spreading to other assets, and the final part is President Biden’s over 40 executive orders, undoing many of the Trump administration’s actions. I’m sure some people don’t believe it but the economy is ‘feeling out’ the new administration’s policies and clearly, the $1.9 trillion stimulus package is being viewed with skepticism.
Market Review
In all this political uncertainty, who would have thought the next hot topic would be the unfairness of the common public getting a run on Wall Street’s finest? GameStop is a true example of supply and demand. In all the rhetoric, no one ever talks about going short the box. Had they been short the box, then they would have had the shares…
If you recall, over the last two weeks I’ve been talking about the insiders who were selling on the rallies. If you want to see a video I made (it’s not two hours, it’s just thirty minutes) I talk about how they took advantage of that micro-flash that was covered up with the liquidating accounts of the big boys.
I did not know the POTUS had cufflinks? Never saw them before…
The bust of Churchill got shoved in the closet and a new union leader Cesar Chavez sits front and center now. Curtains look the same. Just moved the flags and brought in a new seat. It does not look like he’ll be using the phone very much. Maybe just drink a sip of coffee a time or two. He does have a stack of paperwork though. Looks like it was just waiting for him to get in…If you want to look at the same room when Trump had it, it’s on this website.
Wall Street Welcomes Joe Biden As 46th President Of The United States
Trading is an ever-changing game, the tools that we used to use to make money no longer work and the new tools only last as long as the next coder can code it. I for one am not afraid to say it, the trading game isn’t in the futures it’s in stocks. Yesterday, Wall Street welcomed Joe Biden as the next president of the United States. Leading the patriotic rally was Netflix that closed up 17%. The Dow Jones rose 258 points or 0.80%, the S&P 500 finished up 52.94 points or +1.4% and the Nasdaq Composite closed up 2% or 260 points. Earnings have been coming in better than expected. According to FactSet, results have been better than expected with 88% of the companies beating estimates. I have said it a few times and I will say it again; the idea that there was downside risk leading up to the Biden inauguration was a ‘falsehood’. Over the years I admit to falling for some of this BS stock market forecasting b