Dow Closes Slightly Lower, Snaps 3-Week Winning Streak

[Option Beast]( 10/24/2020   |   [View in browser]( --------------------------------------------------------------- [Dow Closes Slightly Lower, Snaps 3-Week Winning Streak]( The Dow Jones Industrial Average fell slightly on Friday to end a downbeat week as investors weighed the potential for additional fiscal stimulus. "I think everyone is in wait-and-see mode," said Mike Katz, partner at Seven Points Capital. "There's a lot of back and forth on stimulus and every headline makes the market move a little bit, but there's no follow-through because we don't have a clear picture on that front." The Dow and S&P 500 snapped a three-week winning streak and the Nasdaq posted its first weekly loss in five weeks. The S&P 500 lost 0.5% for the week. The Dow and Nasdaq dipped 0.95% and 1.1%, respectively. [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... Choppy Waters Ahead by David Sager](#) The stock market started the week on a high note, Monday, (10-12 to 10-16), followed by three days of declines and 'whipsawing:' brought on by a multitude of factors., That the market finished the week higher was impressive considering the waves of negative news. There was a significant spike in Covid 19 cases in the U.S., and around the world, two Covid 19 trials; Johnson and Johnson for a vaccine and Eli Lilly for a treatment, were both halted for safety reasons. In addition, jobless claims shot unexpectedly higher, and a stimulus plan remains elusive. Add in the upcoming election in just three weeks and you have a plethora of reasons to be hesitant in market dealings. Any one of these negatives could have been a reason to sell, and yet the market held up. "The market is in a bullish mood and wants to stay that way," says Dave Donabedian, chief investment officer at CIBC Private Wealth Management. Numbers for the week were barely positive, but as we have noted, when the bull rears its head, not much can stop it. For the week the Nasdaq Composite gained 0.8% to 11,67, while the S&P 500 index rose 0.2% to 3,483, and the Dow Jones Industrial Average advanced just 0.1%, and interestingly, all near highs. As the November 3rd election nears, momentum is building for Joe Biden on Wall Street. But Greg Valliere, chief U.S. strategist for AGF investments, advises financial types to be careful of what they wish for. "Some analysts say it's simply a matter of backing a winner; others say a Biden presidency would be more stable and predictable, with a moderate trade policy and a huge stimulus in early 2021. But that seemingly overlooks the looming tax hikes," he warns in a client note, with the last sentence emphasized in boldface italics! A democratic administration probably would defer tax hikes, while the economy still looks weak, "but the economic impact would come in 2022, after the stimulus sugar high has receded," Valliere adds. Corporate taxes would see the biggest impact, rising to 28% from 21% with a 15% minimum tax and other business levies under the Biden plan. Individuals making $400,000 would have significant tax hits with wealthy Americans facing increased estate and Social Security levies on itemized deductions. Biden has also proposed taxing capital gains as ordinary income for high earners a 'huge factor that could lead to cashing in gains before the effective date," Valliere writes. This all presumes a 'Blue Wave' (trifecta) sweeps Democrats into control of the Senate and the House of Representatives. Ride Sharing Showdown.....Uber, Lyft and other 'gig'-economy companies have spent $184 million to back a California referendum letting them classify their drivers as contractors. In the upcoming election, Californians will be voting on Proposition 22, a referendum that would overturn Assembly Bill 5, a state law passed in 2019 that forces 'gig'-economy companies to classify drivers as employees, rather than contractors. The law is currently stayed, pending appeal, but the referendum could quickly put an end to the issue, if Uber and Lyft win voter support. Polls show voters support the issue with a decent lead. Wheat prices hit their highest level in over five years in reaction to scorching weather concerns over food scarcity brought on by the Covid 19 pandemic and the lockdowns put in place to fight it. Dry weather this year has hit wheat-growing areas around the world, including the U.S., Ukraine and Russia, with Russia being the world's largest producer. The three months of June, July and August constituted the hottest summer ever recorded for the entire Northern Hemisphere beating records in 2019 and 2016. Meanwhile, areas of all three countries experienced below average precipitation. Wheat futures have risen over 11% since August 1st, attracting investors who believe the surge could continue. The most active futures contract for wheat trading on the Chicago Board of Trade closed Wednesday (10-7-20) at just over $6.07 a bushel, the highest close for wheat since June 2015. Interestingly, managed money investors hold a net long position of 28,089 contracts on U.S. wheat futures, that is up from a net short position of 19,760 contracts held by the same firms at the same time last month. Of course the wild card is always the possibility of a hurricane- like 'Delta.' RUMBLINGS ON THE STREET Richard Clarida, Vice Chairman Federal Reserve Board, Barrons "This recession was by far the deepest one in post war history, but it also may go into the record books as the briefest recession in U.S. history." Neil Hennessy, chief investment officer at Hennessy Funds, WSJ "The economy has been holding up very well, considering everything that's gone on, there's a lot that's really going on that's good, and it's just going to get better as we start to open up this economy" Yousef Abbasi, global market strategist at financial services firm StoneX, WSJ "You would hope that after the election you would get some kind of package that would allow the consumer, the distressed corporations, anyone that essentially needs that aid immediately to get it, with a more robust package to follow." Dave Donabedian, chief investment officer at CIBC, Private Wealth Management, Barrons "The market is in a bullish mood and wants to stay that way." Ronald Temple, head of U.S. equity at Lazard Asset Management, WSJ "There are some pretty significant concerns that we're going to see a ramp-up in infections in the U.S.," said Mr. Temple. "I am worried that could be a headwind between now and year-end." [5 Best Mining Stocks to Buy Now]( Gold mining stocks, often used as a hedge against disaster, can indeed be fruitful investments. Factors such as uncertainty and fear in traditional stocks, or a weak U.S. dollar, can drive gold prices (and in turn, gold stocks) higher, and because their prices aren't strongly correlated to the broader market, they can be a useful source of portfolio diversification. Today, we'll look at five of the best mining stocks to buy today. For the most part, we're targeting companies with strong financial positions that can generate gobs of cash - in other words, firms with the resources to ride out rockier periods for their underlying commodities. But we'll also examine one more aggressive pick that might not have the cleanest of balance sheets, but does boast explosive potential. [Article continues...]( [Looking To Buy A Home? It'll Cost You A Lot More Than A Year Ago]( Home sales are back to pre-pandemic levels and beyond with numbers not seen since 2006, said Robert Frick, corporate economist at Navy Federal Credit Union. "The good news is these house sales boost many other sectors of the economy, including materials and labor for remodeling, as well as furniture and home accessories," he said. "The bad news is that if you're looking to buy a home, competition is fierce and prices are rising at an accelerating clip," Frick said. "Home shoppers may need to shop for a lot and a builder instead of fighting to buy in this market." [Click to continue reading this article...]( [Here Are Tips From Financial Advisors For Getting Your Medicare Coverage Right]( Whether you're reviewing your coverage during open enrollment through Dec. 7 or are signing up for the first time, there are some key considerations to factor into your decision-making, advisors say. Although Advantage Plans often come with low or no premiums, the out-of-pocket maximums for in-network coverage can be as much as $7,550 in 2021. So-called Medigap plans, whose monthly premiums can be pricey, provide more flexibility. [More here...]( SPONSORED CONTENT [Legendary "Tarheel Trader" Reveals $5,000 Income Trick]( A legendary Tarheel trader claims she can show anyone how to pull down $5,000, $10,000 even as much as $20,000 a month in income thanks to her "backwoods" trading technique. She's giving away this method for free until Sunday. [Instant access here...]( --------------------------------------------------------------- [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](. [Privacy Policy]( ---------------------------------------------------------------