Good evening folks. Remember a week ago today when stocks fell 2% and the TV was all like, “holy short, China has coronavirus and stocks, they are crashing!”?
Well, sorry to disappoint the latest unreliable sources, but the world didn’t end and, in fact, stocks bounced back making up the difference and then some.
The S&P 500 gained 3.1% for the week and the pundits seem less on edge. The index is now 3% higher so far this year.
It is quite the relief to everyone the world hasn’t ended. Maybe next week…
LYFT, SHOP, BABA, NVDA, and ROKU are set to report earnings next week.
Here’s a look at the day’s performance for the major indices:
| S&P 500 | 3,327 | -0.54% |
| Nasdaq | 9,520 | -0.45% |
| Russell 2000 | 1,656 | -1.23% |
| Dow Jones | 29,102 | -0.94% |
Canada Goose GTFO…
Canada Goose reported earnings this morning. The numbers were better than estimates, but guidance was sickly and the stock fell 4%. This comes after 14 months of brutal selling that has seen shares drop 55% from its peak in November 2018. Maybe this will mark the bottom. Here’s the numbers:
EPS of C$1.08 beats by C$0.01
Revenue of C$452.1M (+13% Y/Y) beats by C$3.92M.
$GOOS suggested that sales might drop because of the coronavirus. We call bull hockey!
Maybe people are simply coming to the realization that they don’t need to fork over $1200 for a jacket designed to keep you warm in Antarctica so you can get the coveted patch.
Here’s a poll for those readers who might wear the coat. Please choose one:
- I make frequent trips to the Arctic Circle.
- I go skiing 20+ times a year.
- I am trying to get laid, what is snow?
- I pay the minimum balance on my credit cards in perpetuity.
Anyway, here’s a screengrab of the Sherriden Parka Black Label for $1200. GTFO…
Pigs on the Wing
Since its Friday after the close and we have all these fresh weekly candlesticks, let’s take a look at one of the more interesting big pic sector charts out there.
The Financial Sector SPDR ETF $XLF is a fair representation of a broad basket of financial stocks including banks, insurance, brokers etc.
$XLF is right at the old highs going back to pre-global financial crisis levels. This is crucial for the sector and even more broadly as financials are the lifeblood of money flow and the economic system.
In December, $XLF broke out of a 2 year channel and is now bumping up against all time highs.
A weekly close solidly above 31.25 would signal a break out and a hold above that level would be hella bullish.
One last thought here – last week’s candle was concerning and we’ve negated the damage there.
$AMZN Highest Close Ever
Since Amazon’s gap up on earnings last week, the stock has held its ground. Today, the it made an attempt at $2100 but failed.
Holding the gap would be a positive. Or, perhaps it only held the gap to trap more buyers just to flush it later. It’s like that scene with the poison wine from Princess Bride. Place your bets.
Here’s a 30 minute chart starting from the earnings gap:
Links that Don’t Suck
You Can Own a Fraction of a Warhol. But Should You? – Bloomberg
Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing – The Tim Ferris Show
The Key to Keeping the Lights On: Artificial Intelligence – WSJ
Tesla Tesla Tesla…Nasdaq 10,000 Is So Close! – Howard Lindzon
