Markets Don’t Care

Welcome to the Rude Awakening for January 7, 2021…

With everything going on in the news in the past 24 hours, you would think markets would be all over the place, but this morning the Dow hit its new record and all the major indices are pushing even higher.

Not only the MAYHEM that we saw last night at the US Capitol…

But covid news continues to get worse, Georgia runoffs basically giving the Democrats the Senate…

And jobless claims are basically unchanged (not a great sign) and private payroll numbers are DOWN for the first time since April.

Mayhem in the news usually means stocks falling off, so this is a very interesting development we’re seeing in the marketplace.

In any case, let’s not try to figure out the overall market’s motivations. It’s an impossible task.

Instead, let’s focus on some new watchlist picks to put money in your pocket.

We can only control ourselves!

Specific Places to Focus in Today’s Market Mayhem

Micron Technology, Inc. (MU) is reporting earnings today after the closing bell.

Generally speaking with this $86 billion company, we see about a 5% move on the stock post earnings. The options on MU right now show a 6.7% implied move.

It’s been pushing up significantly the past few weeks, so today’s earnings announcement and tomorrow’s open could be an indicator on where things are headed.

Another headline was Twitter choosing to suspend President Trump’s account due to their community standards rules and the assertions that Trump’s twitter activity was the root cause of yesterday’s mayhem at the Capitol. Whether or not that’s related, Citigroup came out negative on TWTR today.

We’re seeing some slightly down movement in TWTR this morning. This could be a bearish short term play for you.

All of the bank stocks are getting major upgrades from analysts: Bank of America (BAC), JP Morgan (JPM), Citigroup (C), Wells Fargo & Company (WFC), all getting substantive upgrades and pushing up to new highs.

You wsnt to make sure to watch these for further upside.

Last but not least, Oppenheimer upgraded McDonald’s (MCD) to Outperform from Perform. If MCD can push above their 50day MA, we have a LOT of buy signals pushing on Mcdonald’s.

Trade safe out there today, folks.

We’ll talk to you tomorrow!

Regards,

Scott Stewart

Scott Stewart
Editor, Rude Awakening

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Scott Stewart

Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....

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