Posted November 19, 2020
By Scott Stewart
Job Losses & Covid Cases Hurting Markets
Welcome to the Rude Awakening for Thursday, November 19th.
We have a couple of news items driving markets today.
The big one?
Permanent Job Losses
Job Loss claims came out this morning. Were sitting at 742,000, an increase of 31,000 from previous weeks.
And a lot of these are permanent job losses, rather than many of the temporary losses we were seeing in the initial stages of the virus.
If we look at the effect this is having on the overall markets, we are seeing a mixed pitcher throughout international exchanges. Some are up, some are down.
The US market is still showing some selloff.
The other major news item is the vaccines getting closer to public consumption.
We are trying to battle between this positive driver and the negative driver of the continuing rise in record highs of covid-19 cases.
Markets all opened down.
NASDAQ was down 23 points, the S&P was down 12 points.
With that, we have some new stocks for the watchlist
3 New Stocks to Watch
First up, GoPro, Inc. (GPRO).
GPRO is down on the day nearly 10%, with no real news triggering for it.
This makes for a bearish opportunity play.
Next up, Macy's, Inc. (M). they opened down, but have fought their way back up to a flat level compared to yesterdays trading session.
They are still up above their 50day MA, which might present a buy signal opportunity.
Lastly, we are looking at natural gas. The futures for natural gas have fallen way off. This is due to oversupply, partly because we have seen warmer temperatures for this time of year than is usual.
The ticker that tracks natural gas is UNG.
UNG is down nearly 6% on the day. We might see a signal for a buy on UNG, if it can fall to its recent support at the $8.77 level.
Currently, its at about $9.71.
These are the ones to watch today.
Have a great, safe trading day.
See you tomorrow.
Scott StewartEditor, Rude Awakening