It is becoming increasingly clear what is happening in the markets. First the blow-off in stocks ended on that nasty nauseating session two weeks ago. Next the blow-off in crude oil ended last week. Now the blow-off in the currency markets is ending. The Dollar Index (DXY) is now starting its decent. You read earnings reports like McDonald’s (MCD) and Ralph Lauren (RL), to name a few, and the decimation from the US Dollar’s dramatic rise is amazing. Historic. Now that the DXY is weakening, it will equate to higher crude prices, strong revenue and earnings growth for multinationals and then higher stock prices.
Buying in tech stocks after weeks of heavy selling appears to have begun yesterday. We will need confirmation, with a few days of follow through, before starting to high five.
However, before we can say that the coast is clear, we will need to get through today’s labor report. We really need a Goldilocks report – not too hot and not too cold. Too hot and Fed worries will send more shocks through the markets again. Too cold and recession worries will also get the markets spooked. Non-farm payrolls are expected to rise by 188,000
After Chipotle Mexican Grill (CMG) reported results, I was interviewed by US News & World Report.
With all that said, let’s get to brass tacks…Super Bowl 50. Peyton Manning and the Denver Broncos have two things going for them. First is the team’s excellent defense. Second, is that they are the sentimental choice with Manning likely getting his last chance at another ring on Sunday. However, I think that the Carolina Panthers are the better team. Cam Newton is a better quarterback than Peyton Manning at this point in their respective careers.
Currently, the Las Vegas lines have Carolina a 5 ½ point favorite. The over/under is 45. I locked in the NFC team (Carolina) before the playoffs started giving up 2 ½ points. Remember I live just outside Las Vegas, so this is all legal, at my local Stations Casino. I do not need to make bets with a guy on the street corner with no neck. As far as the point total, I like the over. Now that Denver is a 5 ½ point underdog, I would be inclined to buy a ½ point up to 6 or wait till the spread goes back to 6 to take Denver, if I did not already have any action. Furthermore, I am not about to try to middle between giving 2 ½ points and taking 6 points. Final score Carolina 31 Denver 27 . MVP Cam Newton.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long CMG & MCD — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
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