Innovation in Human Transportation

The Tale of the Tape

Good Evening Folks. 

Yesterday afternoon, Apple warned that coronavirus would negatively affect revenues due to China production delays. The Nasdaq opened weak on this development but shook it off throughout the day to close green (just barely). Impressive resilience I tell you.

Financials were the weakest sector, though SPDR Financial ETF $XLF continues to hold above the 30.50 support area. It is the regional banks stinking the most making all time lows relative to the $SPY, the S&P 500 SPDR ETF.

S&P 5003,370-0.29%
Nasdaq9,732+0.02%
Russell 20001,683-0.24%
Dow Jones29,392-0.56%

Innovation in Human Transportation  

Virgin Galactic was up another 5.65% today. Lots of hype here, but if they can deliver civilians into space it would be a momentous feat in human transportation. A ticket to space will run you $250,000, which may sound like a lot but this is how transportation innovation works. New technology starts out absurdly expensive and then deflates significantly over time.

Remember Elon’s master plan for Tesla? In 2006, he wrote:

Build sports car

Use that money to build an affordable car

Use that money to build an even more affordable car

While doing above, also provide zero emission electric power generation option.

Amazing.

Who knows, maybe in 10 years a trip to space will be like a transcontinental first-class flight. Subscribe to the Daily Rip!

$GLD making a 7 year high

Well bless your hearts gold bugs.

Gold is making 7 year highs into the teeth of this coronavirus panic. It’s like nirvana plus chocolate cake. Next thing you know we’ll be rummaging the house for junk silver and old jewelry before the asteroid hits. We kid. We kid.

Gold has a case of the price momentum and so it’s worth a look. Ace technician @jackdamn posted this long term $GLD chart this AM on Stocktwits. He’s providing the Glengarry levels:

$GLD retesting the neckline of the topping pattern that formed back in 2011-2013. Long-term levels on watch: 170 (up) and 138-139 (down).

Have a look:

Equal Weight Technology ETF

We continue to hear how a few companies are leading the market higher. Apple and Microsoft account for 40% of Sector SPDR Technology ETF $XLK and 10% of the S&P 500.

However, the Equal Weight Invesco S&P 500 Technology ETF $RYT suggests more stocks are contributing to the rally. 

Here’s the chart:

Check out the holdings of $RYT here.

TODAY IS THE LAST DAY!!!

Win a trip to NYC to ring the Nasdaq Opening Bell with us in the heart of Times Square on February 24th. Enter here.

Failed Breakdown & a Bear Trap

Over the weekend Arun Chopra shared the following, 

I never really realized March ’09 was basically a failed breakdown and bear trap post the Lehman low, from which we would rally so far say 450% and end up creating the largest secular pessimism seen since probably the 80’s.

Earnings Tomorrow:

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

Links that Don’t Suck

Wild Footage Shows Historic Jetpack Flight in Dubai – Complex
Avoid the Zeros – Of Dollars and Data
Meet the Sulfur Miners Risking Their Lives Inside a Volcano – Wired
Americana: A 400 Year History of American Capitalism – Amazon (We just ordered this on Barry Ritholtz’s recommendation.)
New All-Time Lows for Banks Relative to the Stock Market All Star Charts