Morning Comment: A


Whenever there are elections or primaries, we like to spend time flipping around and listen to what different networks are saying. Based on what we’ve heard over the past two nights, the support for Donald Trump from Fox News is waning. That wouldn’t be taking place if they didn’t think he was going to lose. Of course, by saying that VP Biden is probably going to win the election, we’re not telling you anything you don’t already know...but we just thought that the recent tone from Fox News is confirmation that President Trump is going to lose.

Anyway, the rally in the stock market broadened out yesterday...so that is positive. The breadth on the S&P 500 improved to almost 5 to 1 positive (from a slightly negative level the previous day...despite the big rally)...and the S&P 500 equal weight index rallied just as much as the regular S&P 500 index (compared to badly underperforming that index on Wednesday).

This does not mean that the rally will continue in a straight line. The futures are trading lower this morning, so we could/should see a pull-back going into the weekend. In fact, a short-term pull-back would be normal and healthy after a 7.4% rally over just 4 days...and given the fact that the definitive result on the election has not been decided yet. More importantly, there are still some serious questions about what kind of impact the new wave of the coronavirus will have on the economy. This newest wave is still in the very early innings, so there are definitely some questions about how extensive any renewed lockdown might be in the coming weeks.

The strong employment report is giving the stock futures a bit of a bid...and thus they are trading off their early morning lows. However, given the huge ...

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Morning Comment: Sen. McConnell Helps the Rally


We agree with the consensus that says the likelihood we’ll get a split government once the final results are in from the election is the main reason the market rallied strongly yesterday...and why the futures are trading a lot higher ...

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Morning Comment: Watching AAPL, MSFT & AMZN very closely


It is interesting to note that the stock market was already giving back a lot of yesterday’s midday gains before the market closed...and before the earnings from several high profile tech companies. Don’t get us wrong, the decline over the ...

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Morning Comment: Europe Breaking Key Support Levels


As a reminder, I will be presenting at the MoneyShow's Virtual expo today at 1:20. Click here to sign up for this conference for free. Thank you and I look forward to the Show!


The last thing President Trump wanted ...

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Morning Comment: A Rise in SAP-type Announcements Will Be Quite Bearish


  • A rise in SAP-type announcements will be quite bearish.
  • CAT is overbought near-term, but any eventual break of its 2018 highs will be VERY bullish.


There is no question that yesterday was a rough day for the stock market...as the ...

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Morning Comment: What is SAP telling us?


As a reminder, I will be presenting at the MoneyShow's Virtual expo in this Wednesday. Click here to sign up for this conference for free. Thank you and I look forward to the Show!


Well, we have just over a ...

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THE WEEKLY TOP 10


I was out of the office and out of contact with the markets on Thursday and Friday in order to attend a memorial service. Therefore this weekend’s piece will be quite a bit shorter than usual...and there will only be ...

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Morning Comment: Yields testing resistance....NFLX testing support.


The market finished the day with a decent gain yesterday, but it closed well off its early afternoon highs. The gain also came on lower volume and mediocre breadth (2.4 to 1 positive on the S&P 500)...so the action so ...

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Morning Comment: LA Dodgers!


For the first time in the history of Major League Baseball, a team has come back from a 0-3 deficit to win their League’s Championship and move-on to the World Series. That’s right, the LA Dodgers were able to come ...

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THE WEEKLY TOP 10


Quick Note: I will be participating in the next "MoneyShow Virtual Expo" that runs from October 27-29. I will be presenting early in the afternoon on October 28th and I hope you will join me. They have a fabulous line-up ...

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Morning Comment: Bullish "internals" this week.


We got more evidence yesterday that this week’s “breather” in the stock market will be followed by a further rally into the election. We’ll still have to watch the action in the market for a couple of more trading days, ...

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Morning Comment: Keep Watching the Dollar


We had been expecting a pull-back in the stock market after its nice two-week rally, so the decline in the market yesterday was not a surprise. In fact, it can be seen as normal and healthy. Of course, if the ...

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