Tesla’s Heating Up Again

Tale of the Tape

Good evening everyone. The stock market rallied today so let us rejoice 🙏🏻. The S&P 500 closed up 1.47% to close at 2,878, the highest close since six sessions.

This was one of those backwards days we’ve seen a few times recently, where the laggards led and the leaders lagged.

Small caps and financials, which have been terrible, crushed the ball like Roy Hobbs, closing up 3.96% and 3.40% respectively. Maybe this is just regression to the mean or maybe something more. See more below.

Regional Banks traded up 6.6%. Wow.

In addition, even though oil got sold, down 23% lol!, the energy sector still rallied like a champ closing up 2.5%.

On the other hand, big cap tech, which has led the snap back rally, underperformed. Google, Netflix, Microsoft, and Amazon were all down in a strong tape. 🧐

All sectors closed higher.

Tesla rallied 10.15% to close at $798.75. The high of the day was $799.49, this close 👌🏼 to $800. See more below.

Earnings season is now in full swing and tomorrow will be off the handle with like 12 million companies reporting so remember your helmets people. Anything can happen.

S&P 5002,878+1.47%
Russell 20001,281+3.96%
Dow Jones24,133+1.51%

Holy Small-Caps Batman!

Small-caps ripped today. They outperformed the other major averages by 2.5% or more. See the intraday chart below.

Small-caps have been underperforming for a while now. Here’s the Russell 2000 vs S&P 500 dating back to 1988. They’ve been lagging badly for a long time.

Was today’s performance a preview of a world where small-caps lead? Or, because small-caps got sold more, are they just snapping back to the mean? Place your bets…

Mobility Trends

Check out the latest feature from Apple, COVID-19 Mobility Trends Report

$AAPL is compiling its data to track how people are moving during the shut-down.  This is great or creepy or maybe a bit of both.

Here’s the latest mobility trends in NYC. People are beginning to move, especially by car. No uptick in mass transit, which is understandable if you’ve ever been smooshed on the subway.

Tesla’s Heating Up Again

$TSLA had itself a day, closing up 10.15%. This was its highest close since late February. The stock is now up 121% from its low close of 361.22 on March 18th.  

That’s more than a double and an $80B increase in market cap in 27 sessions. Amazing how the company holds up even as oil crumbled.

Earnings are Wednesday after the close so hang onto your hats.

Here’s the YTD $TSLA chart. That’s a beastly rip out of a tightening flag.

Tesla says its cars automatically stop for traffic lights.

$LK Haltdown

Luckin Coffee continues to make the papers for all the wrong reasons. 

This from the Wall Street Journal:
Luckin Coffee Under Investigation by China’s Top Commerce Regulator

$LK hasn’t traded in 14 days. Lol

Suns Time To Shine?

Oil is getting clobbered, while solar is hanging in there. Is this an indication that investors are more optimistic about alternatives or, is oil just a total cluster fork? Who knows, but the relative strength in solar is worth noting. 

Here’s the 1-year chart of solar ETF, $TAN, energy ETF, $XLE, and crude oil. Quite the spread. 

Earnings Tomorrow…

Southwest Airlines and UPS could be interesting tomorrow before market open. Both companies have tremendous exposure to the physical economy.

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

UFOs. 2020. 😅

The Pentagon formally releases 3 Navy videos showing “unidentified aerial phenomena”. Just another insane day in 2020. 

Links That Don’t Suck

The Secret Group of Scientists and Billionaires Pushing a Manhattan Project for Covid-19

Weighing the Week Ahead: Should Investors Become Traders?

Capital in the Twenty-First Century 

Nobody Makes Money Like Apollo’s Founder Leon Black  

Average Net Worth by Age and Education Level 

The Coronavirus Economy: What it’s like to run a seasonal tourism business during a pandemic

Drones Take Flight to Carry Covid-19 Tests to Labs in Africa