The Tale of the Tape
Good Evening Folks. Today was a snoozer. If it wasnāt for the $ROKU reversal and the Virgin Galactic stock launch into the Andromeda Galaxy, weād have extended our usual after lunch siesta. Fridays in 2020 have been yawners and weāll take it.
If we zoom out, the S&P 500, the Nasdaq, and the Dow Jones closed at new weekly all-time highs. Fire it up!
$XLRE was up another 1.16% today leading all sectors. It rose 4.86% for the week. What a monster.
Utilities also led while, you guessed it, energy lagged falling 0.6%.
As a reminder, markets will be closed Monday for Presidentsā Day.
S&P 500 | 3,380 | +0.18% |
Nasdaq | 9,731 | +0.20% |
Russell 2000 | 1,687 | -0.36% |
Dow Jones | 29,398 | -0.09% |
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Virgin Trades in Another Galaxy ššš
Virgin Galactic is trading in another galaxy. Shares of the space stock are up 143% YTD. They were up 21% just today. This stock is not trading on earnings. Theyāre building rockets to take people to space. Good luck with your valuation models earthlings.
We kinda hope it goes to 100 just to fork with glib naysayers but we have no idea. If youāre long, make sure to strap yourself in tightly and buckle your helmet. It’s gonna be a wild ride. Hereās the insane weekly chart and a link to Beastie Boys Intergalactic.
$SPCE reports earnings Tuesday, February 25 after market close.
Hereās a great gif of a rocket taking off. We couldnāt resist.
The ROKU Reversal
After yesterdayās close, Roku reported better than expected earnings. The stock traded higher in the after-hours market and opened this morning up 7%. After 6.5 hours of trading $ROKU closed -6.33%. Quite the 24 hours for investors.
Hereās the 5-minute chart. Epic fade.
Let Me Be Blunt šæ
Canopy Growth Company reported better than expected earnings this morning and the stock got high af rising 13.37%. It’s still down 62.65% from its 2018 highs but if youāre properly stoned, who cares.
Thereās two question – 1) how long until cannabis gets fully legalized? And 2) are any of these companies even real? We have no idea.
If youāre in New York City, you know it’s hard to walk down any block and not get a whiff of the devilsā lettuce.
Despite $CGC showing potential signs of life, other kush stocks are not faring so well. Here are a few of the āhottest pot stocksā:
$ACB down 87% from 2018 highs.
$TLRY down 94% from 2018 highs.
$CRON down 70% from 2019 highs.
One could make a case that these stocks are bottoming, but maybe those same folks would fail a drug test. š
Could you imagine a futures market for different strains of weed? Goodness, that would be amazing.
Hereās Michael Franti singing about Ganja. Itās Friday, enjoy.
Ethereum Follow Up
Yesterday, we discussed the recent divergence between ethereum and bitcoin. Hereās a great chart posted by Howard Lindzon on Stocktwits of the ethereum to bitcoin ratio and it looks like this long ETH, short BTC is breaking out.
Go enjoy the 3-day weekend.
BTW, itās NBA all-star weekend if youāre into that sorta thing. The Slam Dunk Contest is Saturday at 9 PM ET on TNT. Hereās MJ taking off at the foul line:
Links that Donāt Suck
Best of 1988 Slam Dunk Contest | Michael Jordan, Dominique Wilkins
NASAās Epic Gamble to Get Martian Dirt Back to Earth
Is This the End of the Road for Mercedesās G-Wagens?
LAnd of the Undead
Behavioral Finance: The Second Generation