Tale of the Tape
Good evening folks. Stocks battled back like a champ today after a rough start to the week. The S&P 500 closed up 2.29%.
Delta Airlines reported its first loss in five years and burned through $100m. It fell 2.7% on the day which isn’t that bad considering global quarantine and just goes to show how expectations get baked in.
Tomorrow $INTC, $WWE, $DPZ, $LLY, $COF, $ETFC and others report.
Tech was back to leading today after a two day stumble. It was the top sector up 3.87% and big cap tech stocks like Apple, Google, and Microsoft were all up 3% or more.
The notable exception was Netflix which traded down 2.8% after reporting a good number and stellar revenue growth. The stock had already run and expectations were sky high so we got sell the news or whatever.
Energy was the second best sector while everything on the oil front remains certifiably insane. Good luck with that one…
Regional banks trade worse than COVID. $KRE, The SPDR S&P Regional Bank ETF, closed down .43% on a day when the S&P 500 rallied over 2%. This continued underperformance is remarkable. Please remember to wear a mask if you’re going to trade these piglets.
Here’s a chart showing the relative performance of the $KRE to the $SPY, the S&P 500 ETF. Gnarly…
| S&P 500 | 2,799 | +2.29% |
| Nasdaq | 8,495 | +2.81% |
| Russell 2000 | 1,201 | +1.39% |
| Dow Jones | 23,475 | +1.99% |
SNAP. DAMN.
$SNAP jumped 36.74% today following its earnings report last night. Today was its 5th heaviest volume day. Here’s the 5-minute chart.
Don’t Sleep on Natural Gas
Don’t look now, but while everyone is paying attention to the crude market, natural gas looks like it could make a run for it. It was up 4.5% today and $2 feels like the battleground. Keep an eye out and place your bets…
“The Fed Can’t Print Gold”
Bank of America issued a new forecast for gold giving the barbaric metal a shiny $3,000 price target. Gold futures were up 2.9% today.
Here is a great chart shared by Stocktwits community member Chris Kimble. He too sees a world where gold can get to $3,000.
Can you see Gold at 3K? Place your bets…
Things Will Keep Getting Weirder
Things have been getting weird for a while now and they just keep weirder.
Yesterday, the near month oil contract traded negative and Kim Jong Un might have gotten himself brain dead. We’re not sure.
Today, Bill Gates got hacked.
If you’re a momentum investor then you understand that higher prices often beget higher prices. It’s not just a YOLO thing. There is an actual evidence basis to the phenomenon.
We’re viewing weirdness similarly. The weirder things get, the weirder they will continue to get. How long will this last? No idea. Just be prepared for more and bigger crazy.
Record-Setting Energy
Here’s a great chart from Strategas showing sector performance over the last 20 days. Energy, Healthcare, and Utilities had record setting performances over this 4 week timeframe. Wow.
Here’s how the sectors have performed YTD. Energy is leading on the downside here. $XLE -44.27% YTD. Oof.
Finalist for Tweet of the Year
Today, the Tampa Bay Bucs tweeted this sublime troll of the New England Patriots featuring Tom Brady and Rob Gronkowski. Classic…
Today on Stocktwits…
$SPY gaps > +1.5% this year. 8 of 9 closed above the open. 7 of 9 closed below the gap open the following day.
via QuantifiablEdgs
Today, $SPY closed above the open, we’ll see if it closes below $278.35 tomorrow.
Earnings Tomorrow
Be sure to know when your stocks are reporting. Here’s the full earnings calendar.
150-Year Oil Chart
Links that Don’t Suck
Panic With Friends – Oil Edition With Alan Shurr (30-yr oil trader)
Beware Of These Divergences
Facebook Invests $5.7 billion in India’s Jio Platforms
George Steinmetz’s Bird’s-Eye View of the Earth
Why Momentum Strategies Work
Toronto Home Sale Plunge 69% in 1st Half of April
iPhone SE: For People Who Don’t Like New iPhones
Health Care Leading in New Highs
Tiger & Phil Joined by Manning, Brady for ‘The Match’ on TNT for COVID-19 Relief
