The Markets Rallied Today And We Have No Idea Why

Tale of the Tape 

Today, the volatility continued. This time it was to the upside. We’ve now had 4 alternating days in a row with big moves in the S&P 500 – Friday down 1%, Monday up 5%, Tuesday down 3% and today up 4%. Further, it was the third day in the last 5 plus or minus 4% or more. 

The choppy waters could go on for a while, grab your dramamine.

Health Care stocks led the way closing up 5.84%, their single best day in 12 years! This was likely a result of Joe Biden’s strong showing on Super Tuesday as he is viewed as more friendly to related companies than Bernie Sanders.

Despite today’s rip higher, the 10yr Treasury yield closed firmly below 1%. Yield and stocks have been positively correlated but that pattern broke at least for today.

Here are the closing prices for the major indices…

S&P 5003,130+4.22%
Nasdaq9,018+3.85%
Russell 20001,530+3.03%
Dow Jones27,090+4.53%

Stocktwits Social Sentiment Ticking Up

Bullish sentiment on Stocktwits ticked higher yesterday despite the 3% sell off. This was kinda surprising to us because you’d think our users might get more bearish on such a bad day. Well, it ticked up again today on the rally to reach its highest level since Tuesday February 25th. Still well below YTD highs, but this looks like an increase in market confidence here among a large sample of traders (8,500 daily average sentiment readings which is huge btw). 

If It’s Not Limited, Is It Even Cool…?

The French company, Newron Motors, is accepting pre-orders for its Tron-esque electric motorcycle dubbed EV-1. The company released a prototype of the bike last year and now customers can get in line with a €2,000 deposit. The estimated final price of the bike is €60,000. You better act fast, Newron is only making 12 of them total.

Today on Stocktwits…

Quibi Has Now Raised $1.75B 

Today, Quibi, a short-video streaming service, announced that it raised an additional $750M, bringing its total funding to $1.75B. The company has yet to publish any content, as the service is set to go live April 6th. Meg Whitman, former CEO of Hewlett Packard Enterprises, and Jeffrey Katzenberg, ex-chairman of Walt Disney, are leading the charge. Because this is exactly what we need during a pandemic… another streaming service. 

Here’s the WSJ with more. 

In Other News

United cutting flights in April

GM Aims to Convince Wall Street Skeptics Its Future Is Electric

James Bond Movie ‘No Time To Die’ Release Delayed Until November Due To Coronavirus

Earnings Tomorrow:

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

Links that Don’t Suck

Traits of Great Entrepreneurs, Kimchi Problems, and Optimizing Company Culture – Ben Horowitz

5 Things to Learn About Martin Zweig

David Tait: Fearless Ex-Head of FX Trading at Goldman Sachs – Life and Trading Cannot Be Separated.

The Future of Work is Automated
We Might Need a Retest: What Are Your Thoughts?