What’s Up with Wall Street? Bad News = Market Boom!
Let’s dive into the madness and make some money!
Did you catch the fireworks on Friday?
You'd have thought it was the Fourth of July the way stocks were rocketing up after those grim job reports came out. Most guys would scratch their heads—bad news is supposed to spook the market, right?
But on Wall Street, bad can be very, very good.
Imagine telling your buddy at the bar that a football team won by forfeiting. Sounds nuts? That's Wall Street for you.
So, why did the market throw a party after a miss on the job numbers? It's all about expectations. When jobs aren't filling as fast, traders bet the Fed might cut interest rates to boost the economy. Cheaper money means easier spending and investing.
Take Apple, for instance. Their earnings were less than thrilling—iPhone sales are dipping. Yet, their stock soared. Why? Because they’re buying back shares and hiking dividends. Classic Wall Street move—bad is somehow good if you can spin it right.
And talk about a rollercoaster! On Tuesday, stocks took a nosedive. But, bam, we bounced right back.
This week, keep your eyes peeled. We're on a bull trap—looks like a path to profits but might just be a setup for a fall.
And with the dollar getting pummeled, it's like everyone's expecting a rally.
When Wall Street seems to be partying amidst bad news, there’s money to be made. Don’t just stand there wondering. Dive in, but with strategy.
Next week's expected move for the S&P 500 is 63 points. Doesn't sound like much? Last Friday laughed at that with a single-day move just as big.
Anyone selling short-term options is playing chicken with a freight train.
Good trading, and remember—rent’s due.
Josh Belanger
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