Morning Comment: Amazon is getting VERY overbought

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I love following politics, so I’m one of those crazy people who actually watches political conventions on TV. When I was quite a bit younger, I remember watching Walter Mondale give his acceptance speech as the Democratic Nominee for President. Early in that speech, he declared, “I’m going to raise your taxes.” Even though I was pretty young, I immediately knew that campaign was over. He had no chance after that line was spoken.

I couldn’t help but think about that speech from way back when...when I heard VP Biden’s quote that he is going to raise the corporate tax rate. Of course, this is a lot different. Raising CORPORATE taxes could very well be a winning strategy...and it’s a proposal that should shore-up some of his base. Either way, there is no question that the Biden campaign has now drawn a new battle line by drawing a substantial distinction between himself and the President when it comes to the stock market. He’s trying to make the stock marker a “lose-lose” situation for the President. If it goes down, everyone knows that it will hurt the President, but the Biden campaign is trying to make the situation such that it will also hurt Mr. Trump if the stock market rallies into the election. I don’t know if this strategy will work, but it’s an interesting one.

Even though the “higher taxes/anti-stock market” strategy might work for Mr. Biden, I couldn’t help but think back to that Walter Mondale speech. It also helped me remember something I stated four years ago when I said that bothTrump and Hillary were lucky...because they were running against the only person they could actually beat. However, I’m now starting to think the same thing is true for both Trump ...

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Morning Comment: Tesla in a Bubble


---Volatility within a sideways range.

---Tesla is in a bubble

---Has the Fed changed the goals of their stimulus injections?



Volatility within a sideways range.

The volume in the stock market has been quite low so far this week...with the ...

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Morning Comment: Happy Birthday America


There’s no question that today is going to be a very “thin” day in the markets, so anything can happen as we move through the day...but there’s no question that the better-than-expected employment report has the stock market rallying strongly ...

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Morning Comment: UPS testing key resistance.

The stock market’s bounce yesterday was certainly a good one...as the S&P 500 retraced 2/3 of its losses from Friday. The move came on very good breadth, but very low volume. The breadth was 8 to 1 positive on the ...

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Morning Comment: Is the bank rally failing once again?


The stock market is beginning to look eerily like it did in early February this year...just before the market rolled-over. Investors are ignoring a big pick-up in the coronavirus cases...and the rally is a very narrow one once again. Thankfully, ...

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Morning Comment: Talking Tough on China Just Became a lot Harder To Do


The stock market rallied nicely yesterday...with the tech laden Nasdaq leading the way once again. The 1.1% rally in the Nasdaq Composite took it back above 10,000 and slightly above its early June highs. We have to point out, however, ...

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Morning Comment: U.S. Open Tennis--Yes; Wimbledon--No. Actually, It Makes Perfect Sense.


Chairman Powell’s comment yesterday that the Fed will “slow their bond buying program as the markets improve” knocked the stock market down mid-morning. On Monday, the Fed’s announcement that they are going to buy individual corporate bonds as part of ...

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THE WEEKLY TOP 10....The Next Few Weeks Are Critical


THE WEEKLY TOP 10: The Next Few Weeks Are Critical.


Table of Contents:

1) We’re going to have to rely solely on stimulus for a further rally in stocks after the big run-up.

2) The problem is that nobody ...

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Morning Comment: The Action of the Next Few Weeks Will be Critical


With the stock market becoming quite overbought on a near-term basis, we have been saying this week that we expected the stock market to begin a pull-back after the Fed meeting/press conference, but we didn’t expect to quite as immediately ...

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Morning Comment: Watching the Aussi Dollar


The rally we saw in the stock market after Friday morning’s employment report was a very good one on several levels. It came on a big jump in volume (over 7bn shares on the composite volume) and very good breadth ...

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Morning Comment: Critical levels...Stay nimble my friends.


About a week ago, we said that the best thing that could happen to the stock market would be it to take a “breather” before it continued much higher. That, we said, would give it a better chance of rallying ...

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Morning Comment: Can European Stocks Be The Big Surprise of This Summer?


We’ve all starting to hear a lot of comparisons between this year and 1968 now that racial tensions and riots have been added to the list of other wild developments for 2020. It sure seems like President Trump is taking ...

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