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THIS Forgotten Sector is Dominating the Stock Market

Posted: 15 Jan 2021 09:44 AM PST

We all know where the big moves in the stock market have been over the last year. Technology and Stay-at-home stocks have boomed to all-time high levels. Over that time, there's a sector that many considered dead in the water. Now it is catching a bid and in a big way.

We're talking commodities… Oil, copper, steel, iron ore, aluminum, and even soybeans are all in strong uptrends. Look at the nice steady climb of the First Trust Global Tactical Commodity Strategy (NASDAQ: FTGC) Chart.

First Trust Global Tactical Commodity Strategy Chart

Here is why this is extremely important…

While higher prices for commodities signal strong economic growth, higher prices for finished goods also indicate inflation. If prices continue to rise and quickly, the federal reserve could ease its fiscal stimulus to slow-down inflation. That policy change would completely change the dynamic on Wall Street and the bullish nature we have seen over the last year.

WATCH THE FULL INTERVIEW to see how to play the commodity markets and what to look out for.

The post THIS Forgotten Sector is Dominating the Stock Market appeared first on Wealthpress.

Global Stocks Fall on Worse-Than-Expected Jobs Report

Posted: 15 Jan 2021 06:38 AM PST

Global stock markets fell this morning following the release of a worse-than-expected U.S. jobless claims report and a dip in multiple Big Tech stocks, which is a vulnerable sector right now. 

The U.S. Department of Labor reported that 965,000 more Americans applied for unemployment benefits last week. That's a huge increase compared to the 784,000 new claims the prior week. 

Markets in the U.S. also took a tumble after President-elect Joe Biden revealed the details of his $1.9 trillion COVID-19 rescue package. The plan would give most people another $1,400 check, along with extra $600-a-week payments for laid-off workers. 

You'd think the market would be bullish after that, right? 

In today's video, I'll explain the biggest catalyst impacting stocks right now… which U.S. Federal Reserve data is impacting major indexes… why the stock market isn't responding to Biden's stimulus plan… and two healthcare stocks you'll want to target right now.

 

P.S. Folks, I'm willing to bet most of you don't know this…

But thanks to a phenomenon called the "January Effect," a select number of stocks have the potential to skyrocket higher than usual over the next few weeks. 

Traders who know what these stocks are can expect huge returns in no time flat. And that's why I want you to watch this presentation right away. 

In it, you'll discover which company just popped onto stock market expert Adam Sarhan's radar — and why it could explode higher in record time. 

Click here to see why you'll want to get in on Adam's next trade today.

The post Global Stocks Fall on Worse-Than-Expected Jobs Report appeared first on Wealthpress.

Stock Market Recap: Thursday, Jan. 14, 2021

Posted: 14 Jan 2021 01:54 PM PST

Wall Street was choppy before settling modestly lower ahead of President-elect Joe Biden’s announcement of his economic stimulus plan that is expected to be around $2 trillion — and more in Thursday's stock market recap. 

The major indexes tagged fresh record highs, excluding the S&P 500, before selling pressure in the final hour.

Federal Reserve Chair Jerome Powell gave the stock market a midday lift after saying it is not close to time to raise interest rates. He stressed that analysts are a long way from maximum employment, and the goal is to get back to a strong job market quickly enough to avoid long-term scarring. 

Stock Market Recap 

The Russell 2000 bucked the trend after surging 2.1% while tapping a late-day record peak of 2,164.

stock market recap

The Nasdaq slipped 0.1% after tagging a morning all-time high of 13,220.

stock market recap

The Dow dipped 0.2% with the intraday lifetime high reaching 31,223.

stock market recap

The S&P 500 fell 0.4% following the morning run to 3,823.

stock market recap

Energy was the strongest sector after soaring 3%. Technology and Consumer Discretionary paced sector weakness after giving back 0.9% and 0.6%, respectively

Stock Market Movers

Shares of Poshmark Inc. (Nasdaq: POSH) skyrocketed 141% in its initial public offering after the company priced 6.6 million shares at $42. The deal priced above the $35-$39 range with Morgan Stanley, Goldman Sachs and Barclays acting as joint book-running managers for the offering.

stock market recap

Stock Market Outlook 

The financial sector will be in focus on Friday's open as Citigroup Inc. (Nasdaq: C), JPMorgan Chase & Co. (Nasdaq: JPM), PNC Financial Services Group Inc. (NYSE: PNC), and Wells Fargo & Co. (NYSE: WFC) will announce quarterly results.

Excluding Citigroup, the aforementioned stocks traded to fresh 52-week highs and will likely set the tone for Friday's action, along with Biden’s update.

Global Economy

The global stock market recap shows European markets settling higher across the board.

The UK's FTSE 100 jumped 0.8% and the Stoxx 600 gained 0.7%. The Belgium20 and Germany’s DAX 30 were up 0.4% while France's CAC 40 advanced 0.3%. 

Asian markets settled mostly higher following better-than-expected economic news.

Hong Kong’s Hang Seng and Japan's Nikkei jumped 0.9%. Australia's S&P/ASX 200 climbed 0.4% and South Korea's Kospi edged up 0.1%. China’s Shanghai fell 0.9%.

Japan’s core machinery orders were up for the second straight month after rising 1.5%.

China’s trade surplus hit its highest ever monthly level in December, as exports grew 18.1% last month, while imports rose by 6.5%, to push the trade surplus to a record $78 billion.

U.S. Economy

Initial Jobless Claims surged 181,000 to 965,000, above forecasts for a print of 790,000, after rising 2,000 to 784,000 previously. This left the four-week moving average at 834,250 versus 816,000 previously. Continuing claims zoomed 199,000 to 5,271,000 after dropping -126,000 to 5,072,000 in the prior week.

Import prices rose 0.9% and export prices climbed 1.1% in December, following November gains of 0.2% and 0.7%, respectively. For import prices, petroleum prices surged 9.1% after bouncing 2.9% in November. Excluding petroleum, prices rose 0.4% from unchanged previously, and are at a 1.8% year-over-year rate. For exports, agricultural prices were up 0.6% following November’s 3.5% gain, and increased 1.3% ex-ag versus the prior 0.3% gain.

Stock Market Sentiment

Boston Fed President Eric Rosengren repeated his recent optimism for this year and a robust recovery in the second half thanks to fiscal and monetary stimulus as vaccine distribution becomes more widespread. However, he doesn’t expect inflation to hit the 2% target on a sustained basis over this time frame and added rates should remain accommodative. Rosengren also added quantitative easing purchases should also continue for some time.

The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was down for the eighth time in nine sessions following the intraday pullback to $150.79. Current and upper support at $151-$150.50 was breached but held. A close below the latter would suggest weakness towards $149-$148.50 and levels from mid-March.

Resistance is at $152-$152.50 with a close above $154 signaling a possible near-term bottom.

stock market recap

Volatility Index

The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) settled higher despite tapping a first-half low of 21.66. Near-term and upper support at 22-21.50 was breached but held.

Lower resistance at 23-23.50 failed to hold on the bounce to 23.47 afterwards. A close above the latter and the 50-day moving average would signal a retest towards 24-24.50.

stock market recap

Stock Market Analysis

The iShares Russell Growth 1000 ETF (NYSE: IWF) was down for the third time in four sessions following the intraday pullback to $239.41. Current and upper support at $239.50-$239 was breached but held. A close below the latter would signal a retest towards $238-$237.50.

Resistance is at $241.50-$242 followed by $243.50-$244 with the recent all-time peak at $244.35.

RSI is rolling over after failing to hold upper support at 55-50 holding. A move below the latter, and a level that has been holding since early November, would suggest additional weakness towards 45-40 and levels from late October. Resistance is at 60.

stock market recap

Sector

The Consumer Staples Select SPDR Fund (NYSE: XLP) was down for the third time in four sessions following the pullback to $65.78. Near-term and upper support at $66-$65.50 failed to hold. A close below the latter would indicate additional weakness towards $64.50-$64.

Key resistance is at $66.50 and the 50-day moving average.

RSI remains in a downtrend with key support at 40 holding. A move below this level would suggest additional weakness towards 35-30 and levels from late October. Resistance is at 45-50.

stock market recap

Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap. 

The post Stock Market Recap: Thursday, Jan. 14, 2021 appeared first on Wealthpress.

Trading Strategies for 2021 Stock Market Uncertainty

Posted: 14 Jan 2021 01:33 PM PST

We're just six short days away from the inauguration of the 46th president of the United States, and while investors are trying to prepare for it as best as they can, they could be in danger of taking on too much risk in their trading portfolio. 

And no one in Wall Street can accurately predict the avalanche of events that will unravel once America says hello to their new president…  

But Live Trade Profit Head Trader Josh Martinez might have a good idea of what we can expect from the stock market's health post election and inauguration.

You see, Josh has been compiling research from the 30 days following the 2020 presidential elections and how the markets have been impacted since.

The S&P 500, Nasdaq 100 and the Russell 2000 are all performing at levels that look good on paper… but things aren't as great as they appear.

Between stimulus checks and forbearance and corporate financial aid, the government has taken a good amount of sting out of the financial consequences for things like not paying your rent or mortgage. And now there's the promise of another $2,000 stimulus check coming soon.

But will those things continue? If they do, we're looking at some massive inflation at an alarming rate.

And if they don't? 

You have forbearance coming to an end soon, but that doesn't mean people will be able to start paying for their mortgages and rent… This means that landlords will be able to kick residents who can't make rent and that banks can begin foreclosing on homes again.

If you mix all of that together, you have a recipe for disaster in the housing market. 

That's just the beginning…

Think about it: Dozens of companies could fall because of a crashing housing market —  roofers, concrete workers, painters, drywallers and construction workers, to name a few.

But the major tsunami hasn't hit yet…Watch this episode of WPTV right now to make sure you and your bank account are well protected for what's coming in 2021

The post Trading Strategies for 2021 Stock Market Uncertainty appeared first on Wealthpress.
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