Nick Was Wrong with Nick Santiago (Ep #457)

from Daily Market Wisdom with Nick Santiago

For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends.

Today:

1. The major stock indexes seem to be holding up well to start the day. As you know, there was a strong rally on Friday and that will often signal short term strength early the following week. So while we need to monitor the action each and everyday there does not seem to be many issues today. The semiconductors are acting well today and that tells me that the indexes should be fine today. If that industry group reverses then there could be problems with the rally.

2. Earnings season will kick into full gear this week. Companies such as Microsoft, 3M, Travelers, Freeport McMoran and dozens of other household names will report this week. This is when we will get a real picture of how these companies are really doing. You see, last week was really primarily bank stocks, now we will see many more leading in different sectors report earnings.

3. Gold is pulling back a bit today. The precious metal space has been like a freight train recently, but it is overbought and due for a pullback/ correction. Silver is really getting hit today and this was long overdue as it has been resilient.

4. Bitcoin is back. As the markets have rallied so has bitcoin. This tells me that the speculative asset classes seem to inflate quicker than the major stock indexes when markets rally. The same goes for the meme stocks like Gamestop. The money runs right back in these when it seems the liquidity is back.

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