Monday, August 23, 2021

⏱️Time to Brace for Volatility?⏱️

Good morning. A number of factors suggest that the stock market is about...
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.

Good morning. A number of factors suggest that the stock market is about to get more volatile. First, we're going into the autumn months, where the stock market tends to see some of its biggest moves. September is usually the worst month for the market on average, and October tends to see some big one-day drops.

This time around, we're also seeing a declining breadth, with fewer and fewer stocks helping the overall market move higher. That's not a healthy sign. Finally, the market has now gone its longest period ever without a 5 percent correction. So a small pullback and some more volatility in the coming days looks increasingly likely for a number of reasons.

Now here's the rest of the news:

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[VIDEO]: How Just $25 Cuts You In


MARKETS
DOW 35,120.08 +0.65%
S&P 4,441.67 +0.81%
NASDAQ 14,714.66 +1.19%
*As of market close
Stocks moved higher into the weekend, but the S&P 500 was still down for the week.
Oil declined 2.3 percent, closing at $62.25 per barrel.
Gold rose 0.1 percent, last going for $1,784 per ounce.
Cryptocurrencies generally rose, with Bitcoin at $48,613 at the stock market close.

Today's TOP TIPS
This Hardware-to-Software Play Closes an Era

A number of companies are synonymous with certain eras. From General Motors (GM) in the 1950s or International Business Machines (IBM) in the 1960s, these companies have changed with the times, but aren't quite as big a player in their industries as they once were.

Kicking off the tech bubble of the 1990s, Cisco Systems (CSCO) was best known for making internet routing equipment. Shares have finally topped their early 2000 peak in the second half of 2021.

» FULL STORY


Insider Trading Report: SoFi Technologies (SOFI)
Christopher Lapointe, CFO at SoFi Technologies (SOFI), recently bought 3,500 shares. The stake increased his position by 1.3 percent, and came to a total valuation of about $49,000.

That follows on two buys from the company CEO earlier last week, who bought 14,300 shares in total at a price of about $200,000 in total. These three buys constitute all the insider activity since the company went public on June 1.

» FULL STORY

Unusual Options Activity: Macy's (M)
Shares of department store chain Macy's (M) rallied last week on news that the retailer would carry pop-up toy shops under the Toys "R" Us brand. One trader sees that trend continuing in the weeks ahead.

That's based on the September $21 calls. With 25 days until expiration, over 104,965 contracts traded against a prior open interest of 2,165, for a 49-fold rise in volume. The buyer paid about $1.80 to make the trade.

» FULL STORY

IN OTHER NEWS
Big Tech Increases Market Dominance

Over the past year, the FAANG stocks increased their combined earnings by 36 percent. Even better, these companies saw bigger profit margins than expected. As a result, these 5 stocks alone now account for nearly 25 percent of the value of the S&P 500, up from just 7.3 percent in 2012.
China Passes Stringent Data Protection Law

China has now passed a data protection law, designed to put legal restrictions on user data collection and avoid unscrupulous data collecting for marketing and other purposes. The law was first proposed last year, but China has signaled an increasing willingness to cut down on big tech companies domiciled in the country in recent months.
FTC Files New Antitrust Complaint Against Facebook

The Federal Trade Commission has filed a new complaint against social media giant Facebook (FB). The complaint alleges that the company has monopolized social media and harmed competition as a result. The FTC would like to see the company divest itself of Instagram and WhatsApp, a move that the company may agree to as it moves to expand into the metaverse and away from a social media site.
Coinbase Loads Up on Crypto

Cryptocurrency brokerage firm Coinbase (COIN) has announced that it will buy $500 million in various cryptocurrencies to diversify its balance sheet. The company will also take 10 percent of its profits and invest them in cryptocurrencies as well. That includes big names like Bitcoin and Ethereum, but the company also stated that other proof-of-stake and DeFi assets could be included.
Topps SPAC Merger Falls Apart

Trading card company Topps had planned to go public via a SPAC merger with Mudrick Capital Acquisition Corp II (MUDS). But that deal is now falling apart, as Major League Baseball and its player's union have signed with a different trading card company, Fanatics Inc. Topps is now planning on staying private.

S&P 500 MOVERS
TOP
NVDA 5.142%
ABMD 4.428%
LUMN 4.321%
PENN  3.949%
MOS 3.889%
BOTTOM
ROST 2.733%
DE 2.103%
LRCX 1.935%
OGN 1.774%
GLW 1.761%

Quote of the Day
Against a backdrop of thin liquidity as investors take summer vacations, minor stock market corrections are to be expected in a market that is pricing in peak earnings, extended price-to-earnings ratios and elevated economic growth expectations.
- Richard Saperstein, chief investment officer at Treasury Partners, on why the stock market may continue to show some daily volatility, but will likely continue to stay near all-time highs.

Sponsored Content
Veteran Tech Legend: "Biggest Investing Event in 400 Years"

He called the #1-returning tech stocks of 2016, 2018, 2019 AND 2020…

Now America's forecasting legend Jeff Brown declares:

"Nobody is paying attention to this technology…

But it's about to change the types of houses, cars & investments you can own (and profit from)…

In a way we haven't seen for 400+ years."

[VIDEO]: How Just $25 Cuts You In


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