The Tale of the Tape

It finally feels a little crashy out there. We don’t have much for you aside from that. Nobody knows when or how the bloodbath ends so beware of those who make such claims.

The S&P 500 fell 4.43%% today. We’re down 10.76% for the week. So far. Good God as James Brown would sing. The Dow fell 1193 points – that’s also 4.43%.

We’re seeing a bit of panic on the streams too with extreme negative sentiment (see below) rumors picking up, overtrading, sloppy action etc. 

No sectors closed green, duh.

There’s some historic sh*t going down. Energy falls everyday 3 to 4 to 5%. Treasury yields are falling through the floor with the 10 Year below 1.3%. Momentum names like $SPCE falling 20% plus in a day. So called, coronavirus plays going parabolic.

The funny thing about it is that everyone’s blaming coronavirus but in reality signs of global problems were showing up in prices well before the lunacy commenced.

Our friend and pro chartist Chris Kimble shared this beauty on Stocktwits this morning. It shows how oil, copper and bond yields were all falling before coronavirus. All of these are economically sensitive so maybe we were already headed towards a global recession and the virus is just exacerbating it.

S&P 500	2,978	-4.42%
Nasdaq	8,566	-4.61%
Russell 2000	1,497	-3.54%
Dow Jones	25,766	-4.42%

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Stocktwits Social Sentiment Indicator

Here’s a look at social sentiment on the Stocktwits $SPY stream, 

Stocktwits community members are more bearish now than they’ve been all 2020. This is a surprise to no one. We’ve dropped nearly 11% in the last 4 sessions, and you can see in the last few days message volume has picked up tremendously. Today, there was nearly triple the daily average (5,900 messages), with 17,000 messages on the $SPY stream alone. People are very negative. 

Space, the Final Frontier… maybe.

Virgin Galactic is crashing back to Earth. It dropped 23.48% today and now $SPCE is down 48% from its high 4 sessions ago. Taking a look at Stocktwits Social Sentiment relative to price for the stock, we see a divergence that began to occur in late January prior to the drop in price. As of today’s close, sentiment is somehow still 69.85% bullish. For reference, at its peak in December, sentiment was 98.6% bullish. 

The Heatmap is Bloody

Boeing New Lows

Today, Boeing traded below and closed under its 2018 lows. Even with the plane crashes earlier in the year the stock managed to remain above this level. Now, on the back of the panic surrounding coronavirus, the stock finally broke down. Here’s a weekly chart:

Earnings for Tomorrow:

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

Links that Don’t Suck

Why it’s “an orderly sell-off”

Infinite Loops – Jim O’Shaughnessy and Jamie Catherwood

Nine Things that Happen when Volatility Increases

Markets Panic Every So Often, It’s What They Do