That Time VW Was the Biggest Company in the World

The Tale of the Tape

Good evening folks. Today, the market raged like a big ol’ bull.

The Nasdaq closed at an all time high with the S&P 500 a stone’s throw away. All major indices advanced 1.5% or more and Utilities were the only sector to close red, which they kind of had coming given their recent outperformance. Tech was strong and Tesla poked shorts in the privates with an electric cattle prod.

Commodities reversed the deflationary death spiral at least for the day, with oil and copper, which have been awful, managing solid gains. Treasuries fell. It was emphatic risk on. 

Here’s the daily performance for the major indices:

S&P 5003,297+1.50%
Russell 20001,656+1.50%
Dow Jones28,807+1.44%

Dead Copper Bounce

Copper broke an epic streak. It had fallen 13 consecutive sessions before today’s 1.65% bounce. For those who use the metal as an economic tell, this was concerning. Have a look at this copper chart:

Chinese Stocks are Poppin’

Despite the plague spreading across China, Chinese stocks listed on US exchanges are seeing buyers set up. We have no idea why people are buying these if the end of the world is near. However, here’s a list of a few of the largest Chinese names. All but one traded higher today.

That Time VW Was the Biggest Company in the World

The wild action in Tesla got us thinking about “the mother of all short squeezes.” During the Global Financial Crisis, VW got squeezed on news that Porsche had gained control of the majority of voting shares. In a few days, the stock gapped up from $210 and hit a high of $1005. Talk about a face ripper. Here’s a chart from that episode of lunacy: 

Check out the full story from 2008 via Reuters

ht Charlie Amadeus for bringing this to our attention. 

Energy Dead Cat Bounce?

Energy ETF $XLE gapped higher, sold off throughout the day and ended the session just barely positive.

The ETF closed below its December 2018 lows for the first time last Friday. Maybe energy is finding support here. Maybe.

Uber Is Breaking Out GTFO

Uber broke out today and is making four-month highs. It’s still 14% below its IPO price of $45, but this rally is an incremental positive as it preps to report earnings this Thursday. It’s worth remembering Facebook lagged for a year following its IPO. 

Too Great Not To Reshare

ht Stocktwits community member Teddy

Links that Don’t Suck

Impostor syndrome: do you sometimes feel like a fraud? – 1843

Will Retiring Baby Boomers Crash the Stock Market? – A Wealth of Common Sense

The Factor Archives: Value  

Can Lemon-Scented Stations and Billions of Dollars Get Americans Into Trains? – Bloomberg