Thursday, December 17, 2020

➡️ The Fed Keeps the Status Quo

Good morning. There was only a small chance that the Federal Reserve would make some kind..
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. There was only a small chance that the Federal Reserve would make some kind of change in its current policy in its last meeting of the year. But yesterday, the central bank stated that it was keeping interest rates unchanged at zero, and that it would continue with asset support (i.e., quantitative easing, i.e., money printing) as needed.

It didn't give markets much of a shot in the arm. Given the performance of stocks this year, a further push was hardly needed in the last fortnight of 2020. The Fed's moves this year brought back all of the programs it took months to develop during the financial crisis in the span of less than a month. And with the ever-popular "Money Printer Go Brrr" meme still in effect, traders should expect market pullbacks, but not full-blown bear markets, anytime soon.


Now here's the rest of the news:

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MARKETS
DOW 30,154.54 -0.54%
S&P 3,701.17 +0.18%
NASDAQ 12,658.19 +0.50%
*As of market close
Stocks traded mixed on Wednesday, with no big moves in either direction.
Oil rallied 0.5 percent, closing at $47.86 per barrel.
Gold rose 0.7 percent, ending at $1,867 per ounce.
Cryptocurrencies jumped, with Bitcoin soaring 7.1 percent to $20,797.

Today's TOP TIPS
A Growth Stock Play in an Unloved Industry
It's no surprise that the restaurant space has had a challenging year. Most small, family-owned restaurants are at risk of bankruptcy, if they haven't yet gone under. But even publicly-traded companies in the sector have struggled as well.

For those chains with poor delivery and takeout options, it's been a challenge. But companies that have quickly adapted to the times are likely to thrive.

» FULL STORY

Insider Trading Report: KeyCorp (KEY)
Robin Hayes, a director at KeyCorp (KEY), recently started a stock position with a 2,500 share buy. The purchase cost a total of $40,000.

Over the past year, insiders have seen both buyers and sellers. But buyers have held the advantage, thanks to multiple director buys and a 100,000 share purchase from the company President back in April. Over the past three years, insiders have been net sellers, so 2020 has been an outlying year for insider activity.

» FULL STORY

Unusual Options Activity: Rigel Pharmaceuticals (RIGL)
Shares of Rigel Pharmaceuticals (RIGL) have been trending higher in recent weeks. Despite a spike higher in shares yesterday, at least one trader sees even further upside ahead.

That's based on the activity in the January 15th 2021 $3.00 calls. Expiring in 29 days, over 22,770 contacts traded, a 45-fold rise in volume from the prior open interest of 508. The trader paid about $1.00 for the options, which are about $0.50 in-the-money.

» FULL STORY

IN OTHER NEWS
The Federal Reserve has its final meeting for the year, focusing on its asset purchases.
Retail sales drop in November, which may indicate worsening conditions going into the holidays.
Homebuilder confidence slips from its record high thanks to rising home prices.
U.S. lawmakers inch towards another round of stimulus, including direct checks.
China reports a boom in luxury good sales.
Traders following the Dogs of the Dow strategy lost about 7 percent in 2020.
Facebook relaunches its Instagram Lite app.
Massachusetts regulators are filing a complaint against trading app Robinhood.
Rising institutional interest allows Bitcoin to top $20,000 for the first time.
Vista buys Pluralsight for $3.5 billion, one of the largest buys in the EdTech market.

S&P 500 MOVERS
TOP
BMRN 4.998%
WDAY 4.695%
CMG 4.022%
PYPL 3.881%
NOW 3.341%
BOTTOM
DISH 11.687%
AIV 8.333%
MAC 5.241%
TSN 4.41%
M 4.283%

Quote of the Day
If you have cash and you're looking for a rate of return, you're not going to get it holding it in cash, you're not going to get it in debt instruments. There's no yield anywhere. So it's almost the old TINA - there is no alternative. You've got to own stocks. That's where the action appears to be, and that's why we've seen people rush into IPOs and have some of them double on the first day.
- Art Cashin, Director of Floor Operations at UBS, on why stocks look attractive going into 2021 even as the economy has remained weak.

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Had you followed just one of these guidelines in early 2020, you could have jumped on 287 winners in ONE DAY which brought back average gains of 718%.

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