Real Love or a One Night Stand?

Tale of the Tape

Hallelujah people and good evening.

Today was the 10th best day for the S&P 500 and the 4th best day for the Dow in history. 

The stock market gapped up and extended throughout the day. All sectors closed in the green and recent laggards led the way higher. Energy was up more than 16% on the day, while financials and industrials were both up more than 12%. These were the three leaders yet remain the worst three sectors over the last 52 weeks.

One Caveat: As Bubbi always says, “just be careful.” 

Bear market rallies are the fiercest rallies and nobody knows what today means. This is the second 9% plus rally this month in the S&P and after the previous one on 03/13 we made fresh lows the following trading day.

We still haven’t had more than one up day in a row since February 12 and so tomorrow’s action becomes BIG.

Take note for a second of how you’re feeling today compared to yesterday. Are you more optimistic and more energized by this huge rally? That’s price leading your emotions and messing with your noggin.

S&P 5002,447+9.38%
Nasdaq7,417+8.12%
Russell 20001,096+9.39%
Dow Jones20,704+11.37%

Airliners 🛫

The airline stocks soared today on reports that a massive stimulus nears. Who knows though…  American Airlines was up over 40%. Holy God. These stocks have been destroyed, so we’ll see whether or not this sharp rally is really love or a one night stand.

Here is today’s performance in some of the biggest airliners. 

And here is how they have fared year to date. This tells a much different story.


Bezos Hit Piece

Today, the Wall Street Journal published a piece suggesting Jeff Bezos sold out before the crash. It failed to mention the billionaire’s annual stock sales going back to 2010. 

He has sold at least 2M shares in 5 of the last 10 years. This most recent sale wads nothing out of the ordinary.

In fact, his 2010 timing was atrocious, those 6M shares he sold back then netted him less than a billion dollars. If he was still holding them today, they’d be worth $11.6B.

Don’t show the journal that or they’ll run a piece tomorrow titled, Bezos is the Worst Market Timer of All Time. We kid, we kid but not really…

Image via Washington Business Journal


Junk

Delta airlines credit rating was cut to junk by S&P today. Ouch.

Here’s a photo of some abandoned airplanes.


Panic with Friends: Stocktwits Community Member, Aureliuscapital

Marcus, aka Aureliuscapital joined Stocktwits founder Howard Lindzon on Panic with Friends. The two discussed the recent market crash and how Marcus was able to profit from the move. Marcus’ trade was risky and even kept him up at night, the trade worked this time.  This was a fantastic conversation.

Here is what Howard had to say about the episode:


Stocktwits Social Sentiment

Here is an updated look at the Stocktwits Social Sentiment Index. We are seeing an uptick in sentiment among our users, today was the second consecutive day sentiment increased. 

Congrats to the folks in Oregon. lol. 

Links That Don’t Suck

Bailing Out Corporations

We’re Not Going to Run Out of Food—so Don’t Panic Shop

Olympians Have Another Year to Prepare for Tokyo. It’s a Blessing and a Curse.

The AlphaMind Podcast: Jon Macaskill US Navy Seal Commander