1. The markets staged a high volume reversal day by the close yesterday. However, today the markets are rebounding, reversing a lot of the declines from the last session. Gamestop (GME) has become the talk of Wall Street as the stock traded as high as $500.00 a share before the opening bell today. While everyone knows the stock is parabolic it continues to go trade where nobody ever expected. Usually, Wall Street cries when a stock gets hammered on the short side, but I have never seen so much crying and complaining when a stock surges to the upside. You have to laugh at this. This is some real Trading Places stuff going on right now Mortimer.  Apple and Tesla are reporting earnings and no one cares. Watch out for parabolic moves, Gamestop is the proof of it. 200-300 point moves taking place within 15 minutes is not a sign of a healthy market. It’s not the Reddit investors moving the market, institutions move the market. Hedge funds are all in on the same trades. Other hedge funds are trying to chop down their competition.

2. Gold/Silver Reddit traders on the move taking gold and silver higher. Silver up 4.6%. It’s been stronger on the daily chart than gold. Is Robinhood boosting First Majestic and blowing out the shorts. Now it’s hitting its prior high. In the end the taxpayer.

1. Wild action continues this morning. Apparently, Gamestop (GME traded as high as $365.00 a share in the premarket. This is a roller-coaster ride that I have not seen before. The word on the street is that there are numerous hedge funds caught on the short side and someone is just squeezing them out. Usually, when something like this has happened in the past it has resulted in a hedge fund or several going out of business. We shall see. Blood in the water. The sharks are circling. If there’s one in danger, Melvin Capital. Another one that made a big move was AMC Entertainment, is it the next Game Stop?

2. Markets are down across the board this morning, but it will be the volume by the close that tells me more. As you know, there is a lot of froth out here at this time. Remember, it's not how they open, it's how they close. There is still a long day ahead of us. 
Later today, we also have the first FOMC meeting of the year concluding. So Federal Reserve Chairman Jay Powell will give an initial statement that will be followed by a press conference at 2:30 pm ET. 

3. Gold/Silver both were gettting slammed but due to market turmoil they both rebounded. More of it come?

1. Does it matter, should we care. Earnings, earnings, earnings, it's all about earnings now. Microsoft is scheduled to report tonight after the close along with several other major stocks like Advanced Micro Devices (AMD), Texas Instruments (TXN) and Xilinx (XLNX). Tomorrow afternoon Apple Inc (AAPL) and Facebook (FB) will report earnings, so this is a big week for the markets as far as earnings are concerned. Tech struggling but still making new highs. Very important names, will they turn down after their reports? Big week for the market. It could turn the market lower, but there’s usually multiple catalysts. There’s now a SPAC ETF, time to watch out. SPAC mania, but they all end the same.

Again, we shall see and watch the reaction in the market. The actual news means very little to me when it comes to earnings.The pattern on the chart that forms afterwards will usually tell me a lot about where the stock is headed.   

This is a 1999 market replay. It’s on the back of cental bank intervention. Parabolic move! The amount of capital being raised by companies is astounding. Shows you how much easy money is out there. BINGO Mania!

2. Gold/Silver going sideways. Backing and filling since August 7 and we’ve been consolidating ever since. Be patient, the pattern is forming. Be ready

1. It looks like a mixed monday for the major stock indexes. The Dow Jones Industrial Average (DIA) is lower, but the Russell 2000 (IWM), NASDAQ Composite and S&P 500 Index (SPY) are flat/ mildly positive. 

2. Game Stop Euphoria on 1/1/21 was $17 and today it just hit $159. Did they come up with a vaccine or is something else afoot? It’s gone parabolic! Nearly a 10 fold increase. Seeing it in PlugPower. Everyone has jumped on the Euphoria. They’re just the flavor of the month.

3. This is a big week for earnings. Microsoft Corp (MSFT) reports earnings tomorrow afternoon. Apple Inc (AAPL) and Facebook (FB) report earnings on Wednesday. We will be flooded with other companies reporting earnings as well so it will be important to see the reactions in the stocks after the earnings announcements are made.  BBB up 40 percent today. Dillards up 14%. Dash for Trash.

4. Gold/Silver futures down on both, slightly. GDX down .28 and GDXJ trading down .55. No record highs coming but good trading opportunities. Depends how the market views them. Traders market 2021.

1. Unemployment 900k new weekly claims. Things could change. Will the lockdowns ever end? UK and Australia are shut down with no place to go.

2. Weaker markets have come back. Dow down slightly, Russell 2000 is up. Light volume helps to keep it going higher. Heavy volume decline, be prepared. Significant earnings reports. IBM reported. Intel down. CSX down. We’re in the heart of earnings season now. The major indexes are hanging in.

3. The financial capital of the United States is shifting from New York to Miami. Taxes alone are making the choice simple. 5000 per day are moving to Florida. The migratory shift is well under way. Eventually all politics translates into economics.

1. This morning, the markets are somewhat mixed. The Russell 2000 Index (IWM, RUT) and the NASDAQ Composite are positive. The Dow Jones Industrial Average (DJIA) and the S&P 500 Index (SPY) are basically flat. So far, it's a quiet trading session, so we will need to watch the chart patterns very closely now. Earning season getting into full swing. How will the leaders react to news. Caution is the byword.

2. These alternate energy stocks have been on fire since early November 2020. Today, Plug Power Inc (PLUG) signed a deal with Renault. Another big day. Please understand, while many of these alternate energy stocks remain strong they are now getting parabolic and that means they will likely start to retreat very soon. 

3. Gold/Silver taking a breather. Down slightly. Both down on a pause. Don’t get too excited over rallies or the declines because the ultimate target is still in place and the patterns just have to work themselves out.

1. Markets are in rally mode this morning as we get ready for the inauguration of Joe biden. It will be interesting to see how long the markets will embrace the incoming president. He is expected to eventually raise taxes both corporate and personal, reintroduce regulations, and spend another $1.9 trillion. This is why we use charts and not our opinion. At this time, the trend is up and until that changes we must stay with it.

2. More regulation, more taxes and more debt. Sounds like a plan for economic success. Trump piles on trillions in debt. And that will continue, but as we know, we’re going to have to pay the Piper. Growth is the elixir. "Paying the piper" means suffering the consequences of your own self-indulgent actions. First year of the decade is extremely volatile. We’re in the euphoria. Remember election night in 2016.

3. Gold/Silver just more of the same. We’re still in the backing and filling phase. Charts are still inconclusive. Beware of head fakes and beware of rallies that are destined to go nowhere. Patience grasshoppers. The charts rule. Silver is a bit stronger than gold. High end of the range is $28, resistance zone.

1. This morning, the major stock indexes are trading higher to start the week. Technology, banks and small caps are all leading the way. So far, there are no major issues for the markets today. Lot’s of problems on the horizon. Solar stocks and alternate energy stocks have done well in anticipation of Biden.

2. Tomorrow is Inauguration Day. Once the new president is sworn in then we will start to decipher the stocks that will benefit under the new administration. For example, the solar and alternative energy stocks are expected to do well under a Biden administration, but this industry group has already run into the news, so it will be important to wait for a solid chart pattern before entering.

1. This morning the major market indexes are starting out a little on the weaker side and selling started to amplify. The trading volumes have picked up which is bearish as witnessed by declining indexes. Russell 2k is pulling back by 1.7%. Nasdaq has rolled over. S&P 500 Spiders down. Volume trends have picked up. Could have something to do with options ex. 100mm shares can be significant. Will the PPT come to the rescue. When time is up, time is up.

Today, is options expiration for the month of January. There has definitely been some whipsaw in many individual stocks this week as expected. I'm always glad to be done with the institutional game playing that goes on every month.

CNBC were roaring bulls this morning, look where it got them. 

Nick gave up looking at retail sales a long time ago.

2. JP Morgan (JPM) kicked off earnings season today. So next week we will start to get flooded with earnings announcements. Always be careful holding stocks into earnings as anything can happen after they report. 

3. Gold/Silver movements today fit the thesis of options ex. Nick believes we’re gonna hit 1700 in gold. It’s working off the parabolic move. Nick’s not into cup and handle guy. No one can tell when the pattern actually happens until after it’s move. Let the market guide you by knowing the patterns.

1. The Weekly Initial Claims number jumped to 965K. The expectations were around 780K, so this is a very negative number. Obviously, new lockdowns are likely the catalyst for this higher number in weekly initial claims. Continuing claims for the week ending January 2 increased by 199,000 to 5.271 million. If interest rates go higher, could be an interesting challenge in the year ahead. Rates will continue to climb.

2. Semiconductor stocks are very strong today on the back of earnings from Taiwan Semiconductor (TSM) and numerous upgrades from Intel (INTC). Today, the semiconductor ETF (SMH) is trading higher by 2.3%. As long as the semiconductors are strong there is usually nothing wrong. When the semis are strong there’s nothing wrong. When the semis are down you better bail. Intel had lots of upgrades. Don’t forget options ex Friday.

3. Gold/Silver flat day basically. Nothing significant. Silver up a little. They’ve gotten the prices where they want them and on to the next round.