A Contra-Trend Day

The market is finally down today. This is a good example of a contra-trend day. That’s when the opposite of everything that’s been happening happens.

Here’s one example: From Tuesday’s high to today’s close, Tesla is down 19%. Here’s another: Zoom is down over 20% over the same span.

How long will it last? That’s hard to say.

We got some good economic news this morning. The jobless-claims report came in at 881,000. That’s much better than Wall Street’s estimate of 950,000. This is the lowest initial claims report since the lockdowns started in March.

The Labor Department also changed its methodology which may have overstated the jobless claims earlier this year. Continuing claims fell to 13.254 million.
Tomorrow we’ll get the jobs report for August. For July, the unemployment rate was 10.2%.

Posted by on September 3rd, 2020 at 1:30 pm


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