Saturday, April 10, 2021
On a day when the markets were down, banking stocks like Bank of America (BAC) generally had positive performances. BAC traded almost 2.5x the usual number of options with about two-thirds of the action in calls. This is generally a bullish sign for the stock (which was up 2% at the time). One very large […]
Shares of Bank of America (BAC) reached “oversold” levels after falling for eight-straight sessions. It held its 50-day moving average while recently announcing fourth-quarter earnings. The chart below shows the RSI (relative strength index) for the stock recently hitting 40, as well as levels from late October. You will also see RSI reached 30 in […]
With stock market valuations sitting near 20-year highs, investors are hoping corporate results and profit outlooks will help determine to what degree the valuations are justified. The catalyst that will drive the market to higher highs over the near-term will be the current fourth-quarter earnings season that will carry over into mid-February and a month […]
Masayoshi’s Son’s Softbank (SFTBY) is in the news again…this time with a $40 billion cash-and-stock deal to sell its chip design architecture firm, ArmHoldings, to Nvidia (NVDA). SFTBY will receive $21.5 billion in NVDA shares and $12 billion in cash, only a little more than the $32 billion that it paid for Arm in 2016. […]
Before the pandemic, the U.S. was already on a path to becoming a cashless society. Each year, more and more Americans come to rely solely on credit cards or smartphones to make payments. But, there is always that one place: the small store that is “cash only,” the gas station that charges less if you […]
Chuck Butler recently discussed the probability of default of $300 trillion in global debt. Chuck added, “The Fed always runs to save Wall Street.” Why is that? Why not Main Street? The Federal Reserve website outlines their mission: “The objectives as mandated by the Congress in the Federal Reserve Act are promoting (1) maximum employment, which means all Americans […]
Looking at options block trades can be a useful way to see what big investors and funds are doing in the options market. Recently, a large trader bought 2 million shares of Bank of America (BAC) while selling 20,000 January calls at the same time. This is likely a covered call trade and suggests that […]
Can bank bailouts bankrupt America? Why would congress let it happen? In a recent Daily Pfennig, friend Chuck Butler tells about educating his grandsons about the worst president there has ever been: “…. I couldn’t let that one slip … I explained to them that Woodrow Wilson was the all-time worst president, … culminating with, he ushered […]
Amidst the government shutdown in the US and the destabilizing trade war with China, it’s easy to forget that the situation in the UK is not any more stable than it is here. The UK Parliament just voted down the current Brexit deal in a massive defeat for the government. In fact, it’s the biggest […]
I’ve mentioned this before, but it bears repeating – we live in the golden age of investing when it comes to variety of and access to investable assets. Due to ETFs and to some extent, options on ETFs, we can now pretty much invest in any known asset class. Moreover, if there’s some sort of […]
