You Know What I Like

Aug. 06, 2016 3:46 PM ETTPR, F, GM, CPRI, SBUX, VXX64 Comments
George Acs profile picture
George Acs
3.38K Followers

Summary

  • The Employment Situation Report gave reason to believe that the consumer base of the economy was growing in number, even as there may be some question about their participation.
  • Investors made it clear that for the moment they like the idea that the FOMC may have justification to raise interest rates.
  • Retailers begin their quarterly earnings reports this week and it will be interesting to see if they offer validation of the idea of an engaged consumer.

In the 57 years since "The Day the Music Died," the S&P 500 has risen about 3800%

What's not to like about that?

Among those perishing in that February plane crash was "The Big Bopper" whose signature hit song "Chantilly Lace" was telling the world what he liked.

While it may be cute when a child gives you that kind of information, not much good is to come when an adult lets free with those unfiltered thoughts.

It may be even worse when they act upon those thoughts that no one needed to hear in the first place.

The Big Bopper's album cover makes the words of the song even more creepy, but there must have been strains of that admittedly catchy tune playing as investors were awaiting last Friday's Employment Situation Report.

Of course, as we all know, there is nothing creepy at all about being in love with money or letting it know what you especially like about it.

It was pretty obvious what investors wanted and liked when the data was released and seemed to put a nail into the shockingly low number of new jobs reported back in June 2016.

I don't know what the equivalent is to the obligatory "chantilly lace" in the song, but the market definitely decided it was time to put a pretty face on the impending likelihood of an interest rate increase.

At one time reviled and probably misunderstood, now the market appears to understand that in the current economic context, a small rate increase is reflective of the early stages of an economy getting on its feet after many years of listlessness.

We have seen a torrent of confusing data and false starts over the past couple of years, as well as 2 months of wildly diverging employment numbers. Given all of

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George Acs profile picture
3.38K Followers
I am a simple individual investor who believes that the playing field is level, but may require active management of one's holdings. I've devised a series of steps that constitute a highly defined covered option strategy that most anyone can follow and that I've described in Option to Profit (2011). Having retired from a career in Pediatric Dentistry, approximately 10 years ahead of schedule, after spending the previous 10 years working just 2 1/2 days each week, I now spend my time trading.For almost 5 years I alerted others of trading opportunities in large cap positions through the Option to Profit subscription service, a premium subscription service that provided actionable Trading Alerts via text messaging or e-mail at my old site www.optiontoprofit.com. As of January 2, 2017, the site  and the name "Option to Profit" are no longer mine. as I've again joined the dark side and taken the easy money. But I've returned to my blogging roots on January 2, 2017 by resurrecting the old TheAcsMan.com ad supported web site, open to all.That, too, ended and the new, subscriber based LEAPtoProfit.com which launched July 2018 and is geared to the less active trader who is either shifting into a "buy and hold" strategy, as am I in this next to final stage of my investing career or seeks to milk an existing "buy and hold" portfolio.Current;y. the LEAPtoProfit p[ortfolio is fully invested and the paywall has been removed until December 2019 when I expect an infusion of cash from position assignments.Ultimately, I hope to make my stock portfolio improve the quality of my life. Whatever stage of life you are in, you can make your stocks improve that quality by putting them to work for you and perhaps LEAPtoProfit can be part of that process.

Disclosure: I am/we are long COH, GM, VXX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I may buy/add shares or sell puts in COH, GM, SBUX and VXX

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