Not applying pressure to my strategy—just cruising

Not much to say.

Sunday research is complete.  I like that Walmart reports before market open.  There are only a handful of stocks that anyone should bother paying attention to, and even fewer that anyone should own.  For the most part, the tickers worth owning come from the west—names like Apple, Alphabet, Amazon, Microsoft, maybe Twitter.  You always have to wait until after-market-close to trade these earnings announcements.  But Walmart, which is just as worthy of tracking and owning as the above, they report in the morning.  Like a chicken and bread eating American they are on the road early, commuting to their work, at their work station by 7am sorting boxes and clicking buttons.  I dig that.  Walmart reports Thursday morning then Nvidia reports Thursday afternoon.  Thursday is likely to be pivotal.  Sure, Fed Chairman Jay Powell speaking Wednesday afternoon is likely to cause some rotations, but the Fed has proven predictable.  Walmart tells the story of America’s economy (and therefore the world’s economy) better than any silly government statistic.  Certainly more relevant than GDP.

As we continue to transition to decentralized currencies like bitcoin, government stats will become less-and-less relevant, much like the various stations of the government have already become.

Anyhow enough of that.  As I highlighted in the strategy session the NASDAQ transportation index is really pressing up into the upper boundary of its multi-year price range.  This key contextual sub index is likely to tell a story about the overall stock market soon and you should have at least 1/5th of your computer screens dedicated to monitoring this instrument.

You really don’t need anything else.  We are at all-time record high stock prices lads.  These are casual times where advisors are gods, optimists are right again and active trading is less lucrative than when we’re in the thick of the auction.  Behave accordingly.

Raul Santos, November 10th, 2019

Exodus members, the 260th edition of Strategy Session is live.  Be sure to read the notes about the NASDAQ Transportation index, at a minimum. Cheers.