1. ADP job report was released at 8:30 am ET today. The number was -20.36 million. This was expected to be a bad number. The service industry was down the most with a loss of 16 mm jobs. Just think about if the service sectors gets going again, a lot of jobs will be backk very quickly. 

Service-providing: -16,007,00
Large businesses: - 8,963,000  
Small businesses: - 6,005,000
Medium businesses: - 5,269,00
Goods-producing: - 4,229,000  

2. Disney reported earning that were pretty ugly, but the stock is acting well. When a stock trades higher on bad news it’s telling you something. It’s already been factored in by the market. This is a bullish sign so far. Opened a position in Southwest Airlines on massive short selling. Buffett’s exited created a massive short position. Expect a huge short squeeze with prices going way higher. Seats will start getting filled faster than anyone expects. General Motors also reported earnings and that stock is actually higher today too. We know auto stocks have been hammered lately. This is also a bullish sign right now. 

3. This year is going to be volatile. Some sectors are going to be hit harder than others. But the market is acting the way it should be. The algos are trying adapt to the market, but everything is subject to error at some times. Many algos are programmed to react news items and social media more than actual market numbers.

1. The major stock indexes held up yesterday by the closing bell. This was a small positive after the negative Warren Buffett news that was released over the weekend. As you know, he sold his entire airline holdings and was very uncertain about the future. When markets go up despite bad news that is usually the ultimate bullish signal. It’s been up a few days, down a few days, a cha-cha. We’re seeing consolidation, without distribution. A bullish signal.

2, Crude oil is on the move again as the economy opens up up $3 per barrel today at $23 and change. If the airline can start flying again it would send crude over $30.00 a barrel. Airlines use a ton of jet fuel. Energy stocks such as XOM, CVX, XLE and others are actually looking good onthe charts right now. Full disclosure: I own Call options in BP.

3. I'm now watching the Disney, Sea world, six flags, and Cedar Fair charts. They are actually all holding up well right now. They still need to shape up a little more, but they could be talking to us about the economy and what’s ahead. Hotel stocks are on Nick’s radar after the earnings announcement. Hoping they will sell off and then Nick will pounce.

4. Gold down a bit consolidating. Will get into gold miners when there’s a bit of a pullback. Silver appears to be the big play right now. SLV is the place.

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1. Warren Buffett is in the news today after annual shareholder meeting. He sold his stakes in the four largest U.S. airline carriers. I've never seen him sell out of a sector at the lows. I know he is good friends with Bill Gates, so maybe he is just trying to help his buddy accomplish his goal of the next Great Depression. He used to buy into markets in the past. In 2008, he was buying everything that he knew would be bailed out by the government, this time around nothing. I hate to say it, but its politics.

2. People are ready for the economy to open up. We are seeing this all over the country now. There are protests even popping up everywhere. There are even businesses that are called non-essential that are starting to open up. people are loosing patients now. According to Apple’s iPhone tracking driving has doubled in the past 3 weeks.

3. More corporate earnings will be pouring in this week. Very interesting week for earnings. Large caps, not trillion dollar babies like Amazon. This will be very telling. The sexy tech names have past , but we are going to hear from a lot of other companies now that are not worth $1trillion or more. This week we’ll get a lot of companies providing parts to Apple for iPhones. 200+ companies per day reports earnings. So far it’s been sell in May and go away but Nick believes that we’ll still have another pop. It’s not always true. This time around perhaps not.  

4. Gold/Silver is continuing the bullish pattern. Get ready for the upcoming jump.

1. Amazon announces earnings and it’s down 7% today. Stock hit a new all time high yesterday. Today it’s getting hammered. When you have this kind of run up you’re getting a buy the rumor - sell the news event. It’s trading 50% higher than it was during the March low. Nick warned all the members to get out. Parabolic moves require caution. It was a Pinnochio move. You’ll have to go to InTheMoneyStocks.com to find out more. Needless to say the market is always going to fake out the majority of investors.

2. Apple has been all over the map. It almost hit 300 and is down 1%. Lots of resistance. Stock is back to where it was in March. Got close to the 300 number and it became a pull-back candidate. It might need the economy to reopen, the chart

3. Gold and silver took hits yesterday but today is a different story. Good action for gold, it’s consolidated. It’s setting up for the mother of all break-outs. SLV is still a hold. Gold miners have been pulling back and then go right back up. Needs more time.

4. Oil is up another 5% 19.76. Trade is still negative. It’s had a nice pop. It could hit 30-35. If the economy starts opening up, people will start driving more. Hopefully the lockdown will end shortly.

The amount of money that has been created out of thin air by the Fed has got to be good for gold (and silver), especially in the long term.

1. Markets such as the S&P 500, Russell 2000, and the NASDAQ Composite have rallied into resistance zones. This is where it will be critical to understance and recognize the patterns formed over the next week or two. Pattern recognition is extremely important at this time. 

2. Yesterday, the FOMC (Federal Open Market Committee) concluded a two day meeting. The Federal Reserve basically said they have endless money for this virus situation. So the liquidity is plentiful right now. Investor and traders must understand this. The real problems really come when the Fed removes the liquidity. 

3. Amazon and Apple report earnings tonight. Amazon has been a big winner during the virus scare. Apple has struggled, but has had a solid bounce since March23rd.    

4. Sticking with Silver trade for now. It’s a natural that should take off when the economy reopens. Nick is expecting $17 silver. It’s a short term trade, but longer term it’s going. Inflation is coming. Right now there’s a huge demand for dollars. Hoarding is going on around the world. When that trend ends, watch out for inflation. Gold and the dollar will go up together.

1. Oil surging today. Positive drug news from Gilead is helping the markets today. The stock has been going back and forth. Potential game changer. Crude is a direct beneficiary if the economy picks up. 

2. Earnings are pouring in. last night Google (Alphabet) reported earnings that were better than expected and the stock is sharply higher today so far.  This is how the earnings season is going to be. Its all about the market reaction, not the earnings numbers.  Tonight, Facebook, Microsoft and Qualcomm report after the close today. 

3. Today, Q1 GDP -4.8%, this was somewhat expected. Right now markets are not expecting any positive news from the past. It was already baked into the cake. The charts don’t lie. Dow is already up 450.

4 REITS IYR is going higher according to Nick. It’s trading around 76 and it could hit 85. It’s very diverse so it’s worth keeping track of and finding your particular sector.

5. Tech is looking very toppy. It’s run up way too fast. The companies that have run up during Coronavirus scare should be avoided. Netflix ran up on binge watch rumors. Now it’s peaked. They’ll pull back for future investment. Energy stocks are looking pretty good. Exxon, Conoco. Nick owns BP Calls. Out of the money. Out till October. Pattern is right for major gains. Basing

1. June Oil (CL-M20) Falling again. This is coming because the USO has told everyone it is rolling out of the June contract and getting into the July contract and further out contracts. They should have traded in stealth mode and not tell the world. 

2. Earnings season is in full gear this week. tonight we have AMD, Google, and Starbucks. All numbers are expected to be weak, but any surprises could give the stocks a lift. The market already knows this. Tech has been leading the rally, they might be getting toppy. Starbucks is hitting resistance at $78. Its March low was $50. Max upside target is $81. Airline stocks could be starting to stabilize. Once the country reopens they’re poised to take off. United, JetBlue are moving. Hotels are holding up extremely well. Hilton Hyatt Choice and Marriott all are looking good. After this week’s earnings come out their chart pattern should be complete and they will be a buy.

3. Tomorrow morning the GDP number will be released. This is going to be a horrible number and likely negative. Fortunately, the market is already expecting a bad number, so I dont expectthe reaction to be terrible despite the bad news.

4. People have had enough. They’re even protesting in the liberal bastion of California. People have taken to the beaches to demonstrate the authoritian measures. The risks of a global shutdown.

5. Stimulus 2 is on the way. There’s a price to pay for this government spending orgy. There’s no free lunch with free money. Inflation is the natural result of infinite money printing.

It’s Monday and time for another installment of Daily Market Wisdom with Nick Santiago

1. Crude oil plunging today. June crude is falling lower by 26% to $12.46/ barrel. Diamond Offshore (DO) filed for Chapter 11 bancruptcy protection. Believe it or not, there will be others to follow, this is what has to happen in order for oil to bottom. We’re starting to see economies around the country open up. Probably the last decline, but you never know! Fill up your tanks now while the going is good. Fracking oil companies are going bankrupt. Perhaps some hedge funds will go down too.

2. General Motors (GM) suspends quarterly dividend and share repurchase program. This probably should have been done sooner. in these conditions it is not practicle to pay a dividend. Other companies have already started to do this and more will follow. Actually the stock has held up pretty well. More dividend cuts are coming. Anything that’s been hit by the virus will need to cut their dividends and stop buybacks. Nick never chases dividends. It can be dangerous for income investors but what choice do they have? Nick believes it’s probably not going to have much affect on the share prices.

3. Big cap tech reports this week. It’s a monster week. Important week for large cap tech. Tech has led the advance and is the strongest sector. That’s why they’re so important to watch. Buffet has a monster position. Online marketplaces are booming. eBay has risen to $40 because people are staying at home.

Amazon AMZN 4.30.20
Apple AAPL April 30 
Facebook April 29
Google April 28  
Microsoft April 29

1. All eyes are going to be on the states opening up. We’re on pause right now as several states reopen. If the openings are successful, then it should lead to other states opening up as well. Georgia is the big one today. The studies look promising on states that never locked down. Either way, it will be very important to get the country up and running ASAP.

2. Today, President Trump will sign a $484 billion bill that will help fund small business, hospital grants and coronavirus testing. All of this money is borrowed and it will need more for the economy to get going. Despite the recent market rally, it is important to get the economy up and going again.

3. Earnings are continuing to pour in. The reaction of the stocks is important to follow. We’re in a consolidation phase right now. We’ve been going sideways since 4-10. We’re consolidating in the 50 percent range. Any time a chart does this type of formation, it’s looking to go higher. It’s a digestion phase. It may take a little more time.

4. Stimulus can not do it all. The country has to get back to business. USO restructures. Oil has rallied. If the economy opens up then oil consumption will follow. Right now USO is dead in the water.

5. Special shoutout to Jim Cramer. We know you're listening and quoting Nick. Please give attribution next time!

1. Weekly jobless claims were 4.42 million. This is another bad number, but the market already new it was coming. Again, if the economy starts to open up this number will drop fast. The key is to get the economy going again. Four more states are opening up. Will we follow Georgia’s example.

2. Oil has rallied since the May contract sell off into expiration earlier this week. Oil is still weak, but if this virus passes it will start to move up higher. Fill those gas tanks now. China and India have been.

3. Hotel stocks are still on my radar, but they are going to report earnings soon. I'm waiting until after the earnings announcements to enter them. My favorites are H, HLT and CHH.

4. Reits particularly Vornado making good chart patterns. Same with hotel stocks, but their earnings are coming out shortly so better to step aside and wait to see earnings and resulting chart patterns.

5. People will start traveling again. Just look at Jacksonville, FL and the beach reopening and they were packed. A good indicator that things will resume very quickly.

6. Reading charts if the stock market is doing well, the incumbent will win. NASDAQ is flat for the year. S&P 12%, DOW down 17% and Russell 2000 is 27%.