Commentary: Paul Ebeing on Wall Street

Commentary: Paul Ebeing on Wall Street

#WallStreet #PaulEbeling #BigTech #earnings #NFPs #employment #interest #Bulls #money #FAANGs

$DIA $SPY $QQQ $RUTX $VXX

Last Week’s Action

NAS Comp is leading the Bull run, The NASDAQ broke to a new high — and held the move, the rebound is helping Facebook, Amazon, Apple, Google and Netflix carry the load.

Recovery stocks are still in recovery mode they need to make a move before the patterns start breaking up, learn when they happen in the Cash Pile Section.

We will play those issues that are making moves until either other stocks enter or the Northside fails

The NAS 100 and the NAS Comp led the charge last week, after the market digested some soft jobless claims and a slower Philly Fed figure (17.2 Vs expected and 24 in July) Thursday. 

The Dog Days of Summer market’s breadth continues narrow.

Narrow leadership has shown up at various times throughout history. In the 1990’s, recall that there was a time when there was only Dell, Microsoft, Intel, Costco and others of that ilk. Before that, it was the “Nifty 50.” 

Ultimately, they correct and reset to allow more stocks to get back into the market. The Key is the time when this becomes a reality.

The Big Q: How much more Northside is there in the FAANGs before they crack?

The Big A: Stay tuned, I will sound the alarm bells,

Technical Analysis

NAS Comp and NAS 100: New highs posted lower opens to higher closes and did so on a nice surge in volume. While people are only buying a few names, they Are Buying Them.

S&P 500 broke higher and is headed due North, 3,500 in sight.

You will likely never get rich renting out your time by the hour

We hear a lot about the Top 1% Vs the have-nots in America now aka the wealth gap. The gap between the rich and the poor has always existed. But never, ever on this level, and in lots cases, the stock market has been the great separator.

Remember, 9 out of every 10 households with incomes over $100,000 own stocks. We know many people who have become millionaires on the back on the stock market’s Bull run over the past 11 yrs.

But the reality is most American’s do not have a red cent invested in stocks. Only 20% of households earning less than $40,000 own stocks. And research from the National Bureau of Economic Research shows 67% of investors have less than $10,000 in the stock market.

In other words, the stock market’s meteoric rise over the past 11 yrs has barely helped most families.

When asked how the stock market performed over the past 11 yrs 50% of of people said the market had gone nowhere. Plus 20% said they thought it fell, amazing.

The number of Americans who own stocks has fallen since Y 2000, but this trend is reversing. Thanks to commission-free trading, all the major brokerages have seen millions of new investors flood into the market in Y 2020.

Charles Schwab said it opened more accounts last Quarter than during any 3-month frame in the firm’s history. TD Ameritrade added 661,000 new accounts, with assets of $78-B in 1-H of Y 2020.

And get this: the Top 15 trading volume days in the TDA’s history all happened in the past 3 months.

New accounts opened on E*Trade in 1-H of this year were more than 2X that of any prior full-year frame.

In short, millions of new investors are getting into stocks for the 1st time, it is a wonderful thing.

Working hard and saving money is necessary. But it is not sufficient. Owning a piece of a successful business aka owning stocks is the main path to wealth that’s open to anybody.

So, if you are unsure about investing in the stock market, now is the time to get off the sidelines.

It’s okay if you only have a little money to get started. These days it’s totally free to buy stocks through most big brokerages. And you can usually open an account with as little as $100.

The important thing is to break the ice and start investing, no excuses.

If you are just getting started investing, 1st look to buy an index fund that owns a lot of stocks. That way you will own a fraction of hundreds of businesses.

Remember, it is your money, your future and your responsibility, pay attention.

Have a healthy week, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.