The Best Week Since June

Weekend Rip 2/9

Good Sunday to you all. 394 companies report earnings this week. Some notables include, Lyft, Shopify, Cisco, Alibaba, Yeti, and Roku. See more below.  

Here’s the weekly S&P 500 chart. The index had its best week since early June rising 3.17% within 2 points of a weekly closing all time high. 

This image has an empty alt attribute; its file name is EoApyiaAVpafKL0qmZbOJ2HXUtQ56myqTNHYOiiy86PLlo5Ut9JylhKgaZJ6saRUOBl51B7ntVvl4PBVDwgpLw68QwVgyGqP804y8o2VYGzFzq9EByFf3JUNtIRJesvRBnLSNjBr
S&P 5003,327+3.17%
Russell 20001,656+2.65%
Dow Jones29,102+3.00%

Weekly percent changes

Markets vs S&P 500

JC Parets shared a ratio chart comparing the S&P 500 ETF ($SPY) with the emerging markets ETF($EEM). He writes, 

Emerging Markets went out Friday at the lowest levels relative to S&Ps since 2003. It sure is sexy to talk about the rotation into EM, but there is still zero evidence of it actually happening….

This image has an empty alt attribute; its file name is vbToi3opQCdR8I3lTin5YgScX4kKVF7xz9ICcLkDPjRFuzyrapPc_eVLGT-PWY3eY1nWIbnkM9Ezh55eny0QospSVCjeEjpOH5gXXF216nOO_Lfp0Cl7e6AwhRs3c1I9pJAR3EYH

Check out this monthly iShares Emerging Markets ETF $EEM chart during the same period. This looks a lot more promising not relative to large cap US.

This image has an empty alt attribute; its file name is tV3NtYqHpXUcvVgwU0iuFadrmAp0lZajLqNw7f--65Dl_C4c6YzMPlUFnFYUY5PRicd9tF8zp71Ee8kESyLMWQCpQykBA3Vmsafnr3rosNIc6MxlP-_u1pVHWGQC6b8le75ypFtY

Here’s another interesting ratio chart shared by the head pastry chef of technical analysis Helene Meisler. Similar to emerging markets, small caps relative to the S&P 500 is making historic lows

Jesse Livermore, The Boy Plunger

Here’s an excerpt from an interview with Jesse Livermore, dated circa 1922.

Lefevre: And where did you get the name boy plunger?

Livermore: It was during the early days when I was trading small lots in the bucket shops, where the man who traded in twenty shares at a clip was suspected of being J.P. Morgan traveling incognito.  I didn’t have a following. I kept my business to myself. As it was, it did not take long for the bucket shops to get sore on me for beating them. I’d walk in and plank down my margin, but they’d look at it without making a move to grab it.  They’d say nothing doing. That is when they started calling me the boy plunger. I had to move from shop to shop, even to the point of changing my name. I couldn’t put trades on without getting cheated on the quotes. This was in Boston, so I then moved to where the real action was, to New York.  I was 21 at the time.

This image has an empty alt attribute; its file name is RHmgFNjVsCmbHfuGRXXUzURt8L6tuhpuPs-ZVyfXTipYJAv4ORW9Uz13b3Cajil7f2P_7yi88I85w-wn2gOaxklpZQCUBiqQXpmVQahSUZnh-Hq9WyHYny2vJxZgsHt6rqJDmcxd

Jesse Livermore the day before he died. 

BTC 10K 👀 

Bitcoin crossed 10,000 Saturday night. We love these big round numbers as sign posts. Anyway, it looks like a six month high or so… 

Here’s a two year bitcoin chart for your viewing pleasure. It’s in a range.

This image has an empty alt attribute; its file name is oT3S_M367WjS-CTlIfVKlaHIqm0YKynfOIFcfv0olu2Le8m3HL1CeDVcmJvO1DmkJf-SATFMIr463MaqwDKg0GaU3xHy8rLsuN7vtMy3O-Pfr1o1OVYOWPu1738DClsQt2rygPmQ

The Week Ahead

And now a brief and well-organized look ahead at the trading week beginning Monday, February 12, 2020:

Economic Calendar:

2/12 January EIA Crude Oil Inventories (10:30 AM EST)

2/13 January Consumer Price Index (8:30 AM EST)

2/14 January Retail Sales (8:30 AM EST)

Here’s the full Economic Calendar provided by Briefing

Earnings Ahead:

Another busy week of earnings ahead. Here’s Earnings Whispers’ great visual.

This image has an empty alt attribute; its file name is jzGbule_0mGwe70aQaRURpARmmcw8qucQWGpuP9E1WxDlHZTACOVqG5b62lJT3oM56wi0yZPkKtEOtdVMPzJCLJIY2VXc0cgnd5d_dp5awcK3qhd7xXu-tPwhnZuBqoVGPprFzzv

Be sure to know when your stocks are reporting. Here’s the full earnings calendar.