1. Markets dropped sharply on Friday in a broad based decline. This tells us that the markets are still in retreat mode from the June highs. Right now, this looks like a pullback from a big advance off the march 23rd bottom. Obviously, there are lots of reports about an increase in coronavirus cases and many investors are worried about another economic shutdown, but this time around I think it will be more like putting out the fire where the flame flares up and not shutting down everything like we saw before. This is a big difference from what happened in March.
2. Russell 2000 is 3.3 percent. Staffing companies appear to be making a range. Manpower hasn’t been bad. Housing sector charts still looking strong. There’s often a disconnect between the stocks and the economy. You have to look at the underlying chart. Southwest got an upgrade and is up over 6%. American up 5%.
3. Don’t be deceived by the Covid panic. The virus is actually abating Effective treatments are being developed. Steroids and HCQ and many other treatments are available. The market doesn’t lie and it’s telling a completely different story. The cure has certainly been worse than the disease.
4. Gold and silver are taking a breather. This is what we need.
5. Nick doesn’t use Elliott Wave Theory while very familiar with it. It’s very difficult to know where the waves are. It gets confusing and Nick’s methods are more reliable. Nick has taken all of the strategies he’s found reliable and combined them all. The key is what’s right over 70% of the time. It always about time, price, volume and patterns. Best moves are off the highs and the lows. March 23 was a major bottom. Nick was off 4 days. Right now we’re getting a sideways structure. Respect the chart. If it breaks down Nick will become a bear, right now he’s a bull.
6. Nick is still bullish on Pfizer and Hyatt call options.
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