Resistance

bear catching salmon

Thomas Mangelsen’s iconic photo h/t mangelsen.com

SUBSCRIBER NOTE: Options Hotline monthly broadcast goes out after the close today

Former support (demand) often represents new resistance (supply).  April’s rebound brought the stock market right to technical resistance. 

A turn lower here indicates a change in the short-term balance of power.

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Best regards,

Steve

Jobsmacked

jobless claims

h/t Yahoo Finance

job·smacked
/ˈjäbˌsmakt/
adjectiveinformal•American
adjective: jobsmacked; adjective: job-smacked
 

Economists and markets utterly astonished; astounded by skyrocketing U.S. initial jobless claims data

This morning’s release of weekly initial jobless claims, by the Department of Labor, was double economists’ estimates.

The pre-market no likey.

Say Kaddish for this Feline Bounce

dead cat bounce

h/t J.C. Parets @allstarcharts allstarcharts.com

“Even a dead cat will bounce if it falls from a great height.”
— Wall Street adage

We’re skeptical of the staying power of the market’s recent rebound.  It resembles a “dead cat” bounce more than a market bottom.

Time will tell.

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Stay well, stay strong, stay home.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

people

h/t Chad Batka and Celeste Sloman for The New York Times

“Above all else, in other words, the stock market is people.  It is people trying to read the future.  And it is this intense human quality that makes the stock market so dramatic an arena in which men and women pit their conflicting judgements, their hopes and fears, strengths and weaknesses, greeds and ideals.”
— Bernard Baruch

Even in these days of computer-driven algorithmic trading, our study of the character of the behavior of market price movement reveals the human behavior of buying and selling that ultimately drives direction.

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Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

US and China flags

h/t fee.org

“It is easier to induce national governments to discriminate against foreign producers than to defend the interests of domestic consumers.”
— George W. Stocking

As the market opens, it’s another trade tension Trump tariff Tuesday.

In the end, tariffs are a tax on US consumers.

Taco Tuesday tastes better.

Best regards,

Steve