Dollar Down – Stocks Up!

It’s coming down to the wire…

The only event the media cares about right now is the election. But there are much more important things afoot in the markets…

Just look at the US Dollar.

The ailing dollar attempted to snap out of its funk in late September. But that move hasn’t held. Last week, the buck began to break down again. Now, it looks like it might have a date with its 2020 lows.

What does a down dollar mean for stocks? I bet you can guess…

Check out the video below where I talk about the dollar, where stocks are headed, and more:

 

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: Beer breaks out

Greg Guenthner

Coronavirus cases are on the rise again across the globe as the “normal” flu season begins. Now, the folks in charge are telling us to get ready for a long, dark winter. No more outdoor dining in the northern part of the country as temperatures drop. Instead, much of the country will be stuck inside.

As you’ve probably guessed, pandemic plays are still very much alive and kicking in this market. Even with the election approaching, many investors are still finding ways to profit from the big shutdown trends.

Just look at this chart of Boston Beer Co. (NYSE:SAM)

SAM

Nothing fancy here – just a huge uptrend in the folks that bring you Sam Adams beer and other popular alcoholic beverages. SAM just reported bang-up earnings late last week, sending shares higher by more than 15% as of Friday afternoon. The stock is now up more than 250% off the March lows.

The move makes sense. Plenty of anxious people are sitting around at home enjoying a few extra beverages. And I expect the uptrend in these booze plays to continue through the winter. Shorter days plus the holiday season and a global pandemic will almost certainly lead to a major sales boost.

Trading Tip of the Day

You can’t “wish” your trades higher…

I know this trading tip sounds pessimistic. I promise this sentence isn’t scrawled on the entrance to trading hell. But it is important for you to heed its message…

Wishful thinking is poison when it comes to your open trades. If a trade hits your stop loss, but you are hoping for a strong earnings report next week, you cut your losses. You can’t wish the market higher. If you try, you’ll drive yourself crazy (and to the poor house).

Approach your trades unemotionally. If it’s time to sell, cut the cord and move onto your next play. Your portfolio will thank you.

— Greg Guenthner

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This Bull Doesn’t Break!

If you didn’t notice, I’m not a bull that breaks easily. In fact, I like to think I view this recent correction differently from most of the doom-and-gloom traders out there…

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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