Friday, January 6, 2023

🏀Retail Investors Remain Nervous – Time for a Bounce?

Good morning. One way to look at the markets is at sentiment. The final week of 2022 was the...
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. One way to look at the markets is at sentiment. The final week of 2022 was the third-worst week for sellers on record, with retail investor selling $3.1 billion in stocks. While that's not huge at the institutional level, it's a sign that many smaller players have been throwing in the towel.

Typically, these extremes also act as a contrarian signal. It may not be a sign that the market will have a massive rally. But we could expect a 5-15 percent bounce higher in the coming weeks, given the extreme negative sentiment.

Traders should still be cautious, as the overall market trend is down. But a few bullish trades can be added to bearish ones right now.

Now here's the rest of the news:

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MARKETS
DOW 32,930.08 -1.02%
S&P 3,808.10 -1.16%
NASDAQ 10,305.24 -1.47%
*As of market close
Stocks closed lower on Thursday, following strong jobs data.
Oil rose 1.2 percent, last going for $73.73 per barrel.
Gold slid 1.1 percent, ending at $1,839 per ounce.
Cryptocurrencies traded flat, with bitcoin trading at $16,862 at the market close.

Today's TOP TIPS
In a Declining Market, Look to Luxuries
There are many ways to play consumer trends. When the market pulls back and the economy slows, it may make sense to focus on companies that can offer users the best price available.

However, companies that cater to luxury markets tend to face less of a slowdown. Even better, these companies tend to see their profit margins hold up, even as lower markets are in decline.

» FULL STORY

Insider Trading Report: FedEx Corp (FDX)
Amy Lane, a director at FedEx Corp (FDX), recently added 280 shares. The buy increased her holdings by 22 percent, and came to a total price of just over $49,000.

This marks the first insider buy at the company since September, when another director bought 1,500 shares, paying just over $215,000. Otherwise, company executives have largely been sellers of shares as options have been exercised, as directors continue to buy.

» FULL STORY

Unusual Options Activity: Bausch Health Companies (BHC)
Shares of healthcare product producer Bausch Health Companies (BHC) have lost three quarters of their value in the past year. One trader sees a rebound in the weeks ahead.

That's based on the February $8 calls. With 42 days until expiration, 26,688 contracts traded compared to a prior open interest of 665, for a 40-fold rise in volume on the trade. The buyer of the calls paid $0.37 to make the bullish bet.

» FULL STORY

IN OTHER NEWS
Payroll Growth Beats Expectations

Private payrolls grew by 235,000 for December, far in excess of the 153,000 expected by economists. That's a sign that the jobs market continues to remain strong, which also makes further interest rate increases likely to curb growth.
FTC Proposes Banning Non-Compete Clauses

Citing the suppression of wages and new business creation, the FTC is considering banning non-compete clauses. Each state has laws that outline how much a company can limit, with some states moving towards making it easier for employees to jump jobs or start new ones in recent years.
Amazon Announces 18,000 Layoffs

Big tech company Amazon (AMZN) is the latest firm to announce layoffs. The company is looking to cut 18,000 employees across the company's devices and books business. Overall, big tech companies have announced over 350,000 layoffs in recent months.
Bed Bath & Beyond Warns on Going Concern

Retailer Bed Bath & Beyond (BBBY) has warned that its deteriorating financial condition could lead to bankruptcy. The company is looking at alternatives such as restructuring its debt, seeking additional cash, or selling off assets. Shares hit a new all-time low on the news.
Celsius CEO Sued for Fraud

The New York Attorney General is filing a lawsuit against the former CEO of Celsius. The filing claims that the CEO defrauded hundreds of thousands of investors out of billions of dollars in cryptocurrencies. Celsius filed for bankruptcy in July 2022, with more than 100,000 creditors with $1-10 billion in assets.

S&P 500 MOVERS
TOP
LW  9.179%
WDC  6.536%
VLO 6.015%
MPC 4.621%
WBD 4.383%
BOTTOM
STZ 9.554%
EPAM 7.929%
SHW 6.86%
NOW 6.787%
CZR 6.268%

Quote of the Day
The Fed is juggling a lot of balls here in the sense they want to slow the pace of rate increases but they don't want the market to start a party, which would then ease financial conditions. They want to tighten, to crush inflation, but they don't want to cause a recession.
- Peter Boockvar of Bleakley Financial Group, on the challenges that the Fed faces if they want to achieve all of their goals while also avoiding a recession – the "hard landing" scenario many fear is starting to play out.

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