To gain an edge, this is what you need to know today.
Note the following:
- Semiconductors are the lifeblood of the new economy.
- Oil is the lifeblood of the old economy.
- The chart shows that semiconductors have broken out.
- RSI on the chart shows that there is more room to run.
- Semiconductors have often been the predictor of where the stock market goes next.
- The breakout in some semiconductors augurs well for the stock market.
- The stock market is in a seasonally strong period.
- Investors should distinguish between different time frames. In the very, very short term, the stock market is getting overbought. When the stock market gets overbought, even in a seasonally strong period, it becomes vulnerable to a shallow pullback.
- The concern is rising about the Delta Plus variant. So far the stock market is ignoring the it but this variant has the potential to become the catalyst for a pullback.
ADP is the largest private payroll processor in the country. It uses its data to give a glimpse of the employment picture before the official report from the government that will be released on Friday at 8:30 am ET.
ADP Employment Change came at 692K vs. 400K consensus.
Momo Crowd And Smart Money In Stocks
The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial) stocks in the early trade. Smart money is 🔒.
The momo crowd is 🔒 gold in the early trade. Smart money is 🔒.
For longer-term, please see gold and silver ratings.
The market is waiting for OPEC+ decision due out tomorrow.
API reported a draw in inventories of 8.153M barrels vs. consensus of a draw of 4.686M barrels.
The momo crowd is 🔒 oil in the early trade. Smart money is i🔒.
For longer-term, please see oil ratings.
Our very, very short-term early stock market indicator is 🔒. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
Interest rates are ticking down and bonds are ticking up.
The dollar is stronger.
Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.
Gold futures are at $1757, silver futures are at $25.98, and oil futures are $73.77.
S&P 500 futures resistance levels are 4318 and 4400: support levels are 4200, 4000, and 3950. 4275
DJIA futures are down 58 points.
Protection Bands and What To Do Now?
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒 and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.
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