How to Trade the Divergence in the Stock Market and Economic Data

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Wealthpress Head Trader Roger Scott, Joy of the Trade Head Trader Jeff Zananiri and Future of Wealth Head Trader Lance Ippolito joined Midas Letter to discuss the divergence in the stock market to headline news and economic data.

20.5 million Americans lost their jobs last month. A decade worth of employment growth gone. But the stock markets has been on the rise. The financial experts tackle the tough question of whether or not economic data means anything and whether that is a new mindset traders/investors need to now adopt.

We look towards the movement in the iShares Russell 2000 Index (NYSEARCA:IWM) as a “canary in a coal mine” to understand how the broader market is reacting to the reopening of the U.S. economy. The Russell 2000 or IWM sends signals of confirmation to the broader market, including the S&P 500 Index (INDEXSP:.INX). If capital flows into the Russell 2000 for it to catch up to the larger S&P 500, we could see a continued rise in U.S. equities. This again is country, to the sentiment actually within the economy.

Watch the full interview as the trio give their insights and trade ideas for short-term plays to capitalize in these contrarian times.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.