1. Unemployment continues to gradually decline. rends are getting better. Covid uptick. With states opening and riots and demonstrations all over the place and it’s obvious. Death rate is continuing to decline. Hospitalizations are up slightly.
2. Everything is down across the board. We’ve been pulling back on the S&P since June 8. Financials are down. JP down 5%. Right now we’re in pullback mode. It’s steady and gradual. Probably continues into July 4th. We’re down 2% so far today. It’s normal to get sideways movement after a huge advance. It’s a slow bleed.
3. Down on the week, assuming we close down today. The Fed could start buying stocks any day now. They’ve already said they’re buying corporate bonds and they’re prepared to buy ETF’s. During the last meeting they said they’ve got a lot of tools at their disposal, they don’t want the market too heated up.
4. Another stimulus is on its way. Nick’s not a fan of creating more debt. Adding more isn’t gonna help, but may help drive the market. The amount of debt is mind boggling.
5. Lots of negatives, Covid uptick, unemployment static, reopening fears, etc. The market will digest them and move accordingly.
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