Profit Pregame

Unemployment Claims Just Fell Below One Million – Here’s What That Means for You

We’re talking jobs numbers…

Well, after a disappointing last couple of weeks, the number of laid-off Americans finally fell below one million again. In fact, it’s the lowest number we’ve seen in a while – totaling to 880,000 people who applied for unemployment benefits last week.

While the numbers are obviously lower, it still proves that even six months after the coronavirus’s arrival, the economy is still struggling to sustain a recovery and rebuild a job market devastated by the recession.

Before the pandemic hit back in March, the number of people receiving unemployment had never topped 700,000 in a week, not even during the 2007-2009 Great Recession. Let that sink in.

With that said, the economy has recovered 9.3 million, or only 42%, of the lost jobs from March and April. So, we’ve still got a way to go, but even small steps are essential when it comes to economic recovery.

Trading tip of the week…

Don’t buy into the media hype. It’s one of the biggest trading mistakes you can make.

It seems like every time I turn the news on, we’re celebrating a bullish market. But in reality, one of the key indicators that a market is overbought is when you can’t find a single person on TV, this is bearish.

Truthfully, I’ve never seen more bullishness on the significant financial news platforms in my life. But when you look at the numbers and what’s happening in the market, nothing is new to support these bullish claims.

I know it’s easy to turn on your TV and get excited about the possible opportunities that could come from such a positive outlook for the market – but I encourage you to take a step back and look at the current situation. The bullishness is going to be short-lived.

In fact, this is the least bullish I have been in six months. But there’s no need to panic. The great thing about the market is there’s always opportunities to make some fast cash whether the market is up, down, or sideways – you just have to be prepared for it. So, be sure to adjust your trading plan and prepare for a possible downturned market coming soon. You’ll be glad you did in the long run.

Earnings report that has caught my eye:

It’s another week of earnings reports.

And I know you don’t have time to be sifting through all the numbers and news.

So, here’s the one I’ll be focusing on, and I think you should too:

Lululemon Athletica Inc (LULU).

I know what you’re thinking…a retail stock!? But let me explain…

I like to keep my eye on every sector, even those that aren’t doing so great. And LULU has been a favorite of mine for years, delivering some profitable opportunities. So, I’m excited to see what this stock does and how I can play it.

Now, LULU is scheduled to report earnings on Tuesday, and recently, analysts have boosted targets ahead of their report. And the reason for the adjustment? The retailer has seen better-than-expected retail traffic, lower-than-expected promotion, and increased confidence in the global market opportunity.

These adjustments make this an attractive possible opportunity to me – but as you know, retail has been a sector I’ve been bearish on for a while. So, we’ll just have to be patient and see what’s to come. But LULU beats expectations; we could see a short-term pop in the stock price, which could deliver some fast cash if you play it right.

So What Should You Do?

Even though the lowering unemployment numbers and gradual re-opening of businesses are all positive signs, I’m not going to count my chickens before they hatch.

Like I mentioned above, it’s easy to become overly excited when hearing the latest news reports, without examining every aspect of the markets – or a particular stock, for that matter…

But it can take hours of research to pinpoint the best places to invest your hard-earned money.

That’s why I created my S.C.A.N. trading system – to do all that work for us…

All we have to do is apply its recommendations, then count our profits.

Learn the secret right here.

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