Dow Flatlines, Leaving Stocks Trapped in a Shaky Holding Pattern

[Option Beast]( 07/18/2020   |   [View in browser]( --------------------------------------------------------------- [Dow Flatlines, Leaving Stocks Trapped in a Shaky Holding Pattern]( The Dow Jones crept moderately lower on Friday. MUFG's head of global research says the stock market's aggressive rally has hit its limit. Investors need something "concrete" to sustain risk appetite. Derek Halpenny, head of global research in Europe at MUFG bank, says stocks are trapped in a sort of holding pattern as investors wait on "concrete" policy developments. [More...]( SPONSORED CONTENT [You Could Make $300 to $1100 Per Contract With This Simple Trade]( Imagine getting really good at mastering just ONE simple trade. A trade that appears like clockwork between 9:30-10:45am on most trading days. This free step-by-step guide, by options expert, Dave Acquino, shows you how to spot and take these trades so you can walk away with daily profits! [CLICK HERE for instant access.]( [REFLECTIONS... the Uncomfortable Crunch, by David Sager](#) As crunchtime looms, the battle begins; the November election, and the covid19 virus pandemic create a messy recipe for the economy in the second half. As noted in a previous 'Reflections', everything seems to be going 'sideways', that could be positive news for the markets. The Dow Jones Industrial Average rose 811 points, or 3.2%, while the S&P 500 gained 4% to 3130, and the NASDAQ climbed 4.6% to finish the week at an all-time high. That's not sideways, but the previous 'good' week followed a 'bad' one, which was preceded by a 'good one', which was preceded by a 'bad one'. Not quite a roller coaster, but definitely swishey! Again on the negative side of the page, Covid19 is still hovering aground, making some pretty grotesque numbers, a record 52,000 were infected in a mere 24 hour period. As states roll back reopenings, it further stalls the recovery timeline. On positives, the Feds are pumping more money into the economy, including helping the states, and are considering a stimulus - possibly in the early fall. The uncertainty of the pandemic as it personifies the 'sideways' movements, will hopefully work itself to a more positive posture. A new national security law took effect on Wednesday, (July 1st),as Hong Kong's autonomy was stripped. The law was much stricter and more far reaching than anticipated. Even individuals who break the law outside of Hong Kong could be extradited to mainland China when they return to the city. In response to this harsh edict, the US house of representatives approved new sanctions on banks that do business with Chinese officials after Beijing adopted the new law. Further unrest is anticipated when China tightens these sanctions and initiates strong enforcement. Early indications are that Beijing will react fast and efficiently. Mr. Buffett made headlines today (July 6th), when Berkshire Hathaway's utility division announced the acquisition of Dominion Energy for nearly 10 billion. Breaking down the takeover, Berkshire will pay $4 billion in cash and assume $5.7 billion in debt. Investors have been wondering whether the massive conglomerate owned by Warren Buffett would look to make new investments in light of the economic downturn, especially after the company said in May it had $137 billion in cash on its balance sheet. For Dominion, the deal is one in a series of moves it has made as it transitions away from the gas transmission business to becoming a "pure play" regulated clean energy utility company. Back to Mr. Buffett and his 'baby', the $273,000 class A stock. Those shares have trailed the S & P 500 for the second straight year. While conducting the virtual annual meeting, his nonchalant and cautious attitude towards showing interest in buying back stock or showing much confidence in overtaking the S & P were visibility lacking. Although his investment record has not been enviable in the past decade, his stature and respect in the investment field amongst his peers is unquestionable. RUMBLINGS ON THE STREET... Jerome Powell, Chairman, Federal Reserve, in congressional testimony. Barron's "while this bounce back in economic activity is welcome, it also presents challenges notably, the need to keep the virus in check." Greg Vallierer, chief U.S. political strategist at AGF Investments, Barron's "If it's a relatively close election and Biden wins, i would expect the Senate to remain Republican, but if it's a blowout, then the Senate falls to the Democrats," says Mr. Vallierer. He says the odds of a Democratic "trifecta" are rising as Biden's lead in the polls widens. Vallierer thinks there is a reasonable shot that Senator Elizabetgh Warren would be named treasury secretary under Biden. That would mean tougher regulations of banks. Satya Paradhuma, director of research at Cirrus Research. Barron's "The uncertainty regarding this pandemic just fired up again, as infection rates continue to climb in key US regions," writes Mr. Paradhuma, "In many ways, we will continue to witness a market that is 'Covid-on, Covid-off," Nick Nefouse, Blackrock, Barron's "For a young investor, the biggest risk is not the market: it's losing their job." David Kelly, chief global strategist at J.P. Morgan Asset Management, Barron's "(I)nvestors should recognize that we are still very far from a healthy job market and that a recent resurgence in the pandemic will make further progress slower." [Here's Why Netflix Is Ripe for a Stock Split]( Netflix's stock recently hit a five-year high of nearly $550, raising the possibility of a stock split. The streaming giant has had two stock splits since going public. Though the streaming market leader disappointed Wall Street on some metrics in the Q2 results, the stock's consensus estimate is OVERWEIGHT. [Article continues...]( [Early-Stage Mortgage Delinquencies Hit 21-Year High]( The percentage of homeowners who fell a month or two behind on their mortgage payment hit a 21-year high in April, as the coronavirus pandemic forced states across the country to shut down and millions of Americans out of work. [Click to continue reading this article...]( [3 Game-Changing Coronavirus Vaccine Stocks That May Make You Rich]( Investors need a bevy of high-growth stocks as part of every well-rounded biotech portfolio, and the market's furor surrounding the prospect of a COVID-19 vaccine creates the perfect conditions for those seeking returns in the biotech space. Thanks to the market's excitement about the vaccine development activities of these three companies, each has exhibited stunning growth in the first half of this year, making them attractive options for investors seeking profit. [More here...]( SPONSORED CONTENT [Can Your Nest Egg Survive an 89% Market Crash?]( The stock market crashed 89% back in 1929... and it can happen again. But options give you the potential to go after profit even when the market crashes. Getting started is simple. [Click here get your absolutely FREE options trading guide...]( --------------------------------------------------------------- [Option Beast]( Send this to a Friend. [Click here.]( | Not a Subscriber Yet? [Click here.]( All content © 2020 Option Beast Neptune Ave, 300 Main Street #711, Madison, NJ 07940 USA Welcome to Option Beast, an e-mail service that replaces many of our previous alerts. We hope you enjoy it. If you do not wish to receive this email service, please [click here to unsubscribe](. 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