1. Weekly initial jobless claims were posted at 8:30 am today. There were 2.123 million new claims. More importantly, continuing claims declined to 21.052 million from 24.912 million. So as people get back to work and as the economy opens up these numbers will get better. Continuing claims is the number to watch.
2. Money is rotating out of the large techs and into financial and retail. Macy’s is up to $7 up from under $5 just a few days earlier. Caterpillar is starting to strengthen. Markets are up a little today, the Russell 2000 is down slightly. Right now charts are looking up.
3. Massive amounts of stimulus money are sloshing around out there. It needs to be rolled back. Someone is going to pay for it. Enough is enough. Congress wants to keep the spigot open and so does President Trump. The past 5 presidents have made no effort to curb increasing debt levels.
4. Boeing is up $7 with indications that it will restart 737 Max will production shortly. Airlines have had a big move. Airlines and hotels are now taking a breather. Consumer stocks have been hot. Nick closed a Unilever trade for 45%. A lot of beaten down stocks are now seeing big increases. Money coming out of pharma. A minor correction and then will probably move higher. McDonalds is just under $190, Nick sees low $200’s. Same with CocaCola is moving. It put in a base for 1 month. Nick likes all the restaurant groups. Shake Shack could still go higher. Starbucks could also make a move. Chipoltle has made a huge move. Too high on the chart. It could go up higher but it’s nearly parabolic. Darden is also primed make a move.
5. Crude oil is moving sideways hopefully for a couple of weeks and then it will begin its move, perhaps as high as $50 per barrel. Traffic is picking up. July 4 could be the day when everything picks up.
6. Right now it appears that the naysayers about the economy were wrong and the charts seem to be confirming. Home builders have been extremely strong. They’re encountering a little bit of resistance. Toll Brothers gapped up, way up from its March lows.