Land of Hope and Dreams

Seeing financial media report the market up sharply this morning, on hope for big Pharma progress in the fight against Covid-19, had me thinking of the great song above by Bruce Springsteen and the E Street Band.

Reports such as that trigger my contrarian senses.

The character of the behavior of market price movement actually has us quite skeptical.  Don’t be surprised to see stocks move south.

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Stay smart and stay safe.

As Bruce sings, “Tomorrow there’ll be sunshine and all this darkness past.”

Best regards,

Steve

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

I view each day’s trading as a struggle between buyers and sellers for the advantage in price direction. 

The character of the behavior of market price movement tells us whether a particular day is positive, negative, or indecisive.

Though yesterday’s stock market session closed little changed from Monday, its character was decidedly negative (sharply higher open only to close near the low, producing the largest give-up of gain since 2008).  This sets short-term resistance and implies the likelihood of lower prices to come.

The struggle is on now with the Fed desperately printing and pouring money out (inflationary) in an attempt to quell a devastating economic decline (deflationary), spreading like a wildfire, ignited by Covid-19.

We shall see which side prevails.  Until proven otherwise by price, bears retain the edge.

Be well,

Steve

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

UCSD Geisel Library

UC San Diego’s Geisel Library, h/t sandiegomagazine.com

“You will come to a place where the streets are not marked.
Some windows are lighted. But mostly they’re darked.
A place you could sprain both your elbow and chin!
Do you dare stay out? Do you dare go in?
How much can you lose? How much can you win?

And IF you go in, should you turn left or right…
or right-and-three-quarters? Or, maybe, not quite?
Or go around back and sneak in from behind?
Simple it’s not, I’m afraid you will find,
for a mind-maker-upper to make up his mind.”
— Dr. Seuss, Oh The Places You’ll Go!

Your Almost Daily Bit of Wall Street Wit & Wisdom

William O'Neil warning about bear markets

h/t Joseph Fahmy, @jfahmy

“Be patient, keep studying, and be 100% prepared.  Later, at the least expected time, when all the news is terrible, winter will ultimately pass and a great new bull market will suddenly spring to life…So get prepared and do your homework.  Create your own buy and sell rules that you will constantly use.”

That’s some bear market investing wisdom from William O’Neil.

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.