Tale of the Tape
Stocks bounced back today after yesterday’s historic sell-off.
The S&P 500 closed up 6.00%. We’re now down 6.71% on the week and 21.5% year to date.
This rally was the latest in sawtooth volatility. One day up big, the next day down bigger. The one thing we really need to see is follow through. Can tomorrow rally after the one today? If we can put together more than one day of constructive action in a row that would at least be something. Related, we haven’t had two or more up days in a row on the S&P 500 since February 10, 11 & 12th.
Fingers crossed for tomorrow…
The energy sector remains profoundly weak. WTI Crude closed down another 6% today below $27 and another multi year low. The 2016 closing low was 26.21 so there’s still some support somewhere but still.
If this is a reflection of the game of chicken between Russia and Saudi Arabia, so be it. If this is a reflection of the global economic slowdown caused by coronavirus, then yeesh. The reality is probably some of both.
Amazon “Temporarily Prioritizes”
Amazon issued this statement today:
We are seeing increased online shopping and as a result some products such as household staples and medical supplies are out of stock, with this in mind, we are temporarily prioritizing household staples, medical supplies, and other high-demand products coming into our fulfillment centers so we can more quickly receive, restock, and deliver these products to customers.
Prime members will probably survive without one day delivery here and there so hold your horses people.
$1 Trillion Dollar Deal
This is freaking huge.
President Trump is asking Congress for emergency economic relief due to the coronavirus.
The deal, if passed, would include the federal government sending checks directly to the people.
Here is what Trump said on the matter.
We want to go big, we want to get it done and have a big infusion.
See the Wall Street Journal for more.
Stocktwits Social Sentiment Index
Despite today’s rally, Stocktwits Social Sentiment made a new low. Perhaps our users are growing less reactive to these one day rallies that have been met by selling the next day. We’ll know more tomorrow and will update this potential divergence in the Rip.
Facebook Is Stepping Up
Facebook announced that it will be offering $100B in cash grants and ad credits to up to 30,000 small businesses.
This is a fantastic example of corporate America stepping up and helping out during these tough times. Well done Facebook 👏
Please note the lack of sarcasm here. We are genuinely praising these evil freaks.
Here’s more information on the program.
Not So Fun The Second Time Around
Tesla traded through $420 today for a bit before closing at 429. This time around we didn’t see any “funding secured” memes.
Here’s the weekly $TSLA chart. The stock has remained above its former $390 resistance, at least for now.
That said, Tesla is down 53% from its February 19th closing high.
2001 NBA All-Star Game
In case you forgot, the 2001 NBA All-Star game was very entertaining. Here’s the full game replay for those of you who, like us, are struggling without sports.
Links That Don’t Suck
How Parents Can Keep Kids Busy (and Learning) in Quarantine
It Takes a Village
How I Built This With Guy Raz – Steve Madden
Six Steps for Leadership in a Crisis