“Work from Home” and DOUBLE Your Money!

The brutal headlines keep coming…

Millions of Americans have filed for unemployment since the coronavirus shutdown began, with another 2.4 million filing for benefits last week alone.

Home mortgage delinquencies posted a new record in April. Loan delinquencies jumped 1.6 million in April, Bloomberg reports. That’s the biggest one-month gain ever.

The Consumer Price Index also took a major tumble in April. Consumer prices dropped by the most since the 2008 financial crisis, CNBC notes, “weighed down by a plunge in demand for gasoline and services, including airline travel, as people stayed home during the coronavirus crisis.”

If you spent all your time glued to the doom and gloom on the evening news, you’d probably think the market had fallen into a bottomless pit. After all, there’s no way stocks can recover from this damage!

The experts agree. Goldman Sachs just said the market is too expensive. To be fair, they’re probably right! The S&P’s forward-looking price-to-earnings is the highest it’s been since the year 2000. But we shouldn’t sell just because Goldman says so. Instead, we should be watching when the big boys are doing with their money.

One glance at a chart will give you all the answers you seek. Despite the horrible economic news, stocks roared higher to start the week. Everyone was expecting stocks to run out of steam, yet the S&P 500 continues to steamroll the bears, gaining almost 3.5% on the week as of Thursday afternoon:


It’s clear that buyers remain in control of the market. Right now, there’s are plenty of “greater fools” that will buy at a higher price…

Bad news all around us. The market doesn’t care. Position your trades accordingly.

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: The Demise of the American Office

Greg GuenthnerMillions of non-essential employees across America continue to work from their makeshift home offices even as parts of the country begin the reopening process. And this trend isn’t going to end anytime soon…

In fact, it’s just beginning. I don’t believe the American workforce is going to return to commuting anytime soon, leaving employers scrambling to figure out solutions for their remote office staff.

Silicon Valley is taking the lead in the work-from-home revolution. Twitter Inc. (NYSE:TWTR) recently announced that its employees are free to continue working from home permanently if they so choose. Just yesterday, e-commerce giant Shopify Inc. (NYSE:SHOP) said its workers could continue to work remotely even after the pandemic passes.

“The company plans to keep its offices largely closed for the rest of the year as it re-designs its space for a ‘digital by default’ mindset and adjusts to a remote work environment,” Bloomberg reports. “Offices will be limited to 20% to 25% capacity after that.”

SHOP isn’t just a leader in helping its employees work from home. It’s also one of the strongest stocks on the market right now. Shares are up more than 100% in 2020 after yesterday’s jump above $800 to all-time-highs.

SHOP chart

It’s been a wild ride for SHOP shareholders — and it’s probably not over yet!

Trading Tip of the Day

Beware the traps of overtrading.

A careless trader will sometimes pinball from one hot stock to the next. That’s why you must understand how timeframes and how often you trade affect your overall profitability.

Here’s a helpful tip: The shorter the timeframe, the less predictable the price. Unless you’re experienced with very short-term momentum strategies, don’t waste your time day trading. It’s a surefire way to churn your account.

Investing is hard. Trading is even harder. Anyone who as ever traded a single share knows it. I seriously doubt that a group of the smartest traders in the world could beat the market by trading every five minutes.

Only trade the patterns and setups that work with your system – or you might risk losing your shirt. Overtrading isn’t going to make you rich. But it might make you go crazy.

— Greg Guenthner

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How Much Are You Paying for Gas?

After what looks like crude capitulation, prices have stabilized in oil and the overall stock market for what looks to be the next leg up. June crude hit $18 on Wednesday after the financial unwinding contract expiration debacle.

Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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