The Weekend Rip: Look! A Shooting Star

Good evening everyone. This week features another slew of earnings. A bajillion companies report and we expect few if any of them to provide guidance. Headliners include; Shake Shack, Disney, Square, Shopify, Paypal, and Roku. See the calendar below.

Shooting stars are everywhere on the weekly charts. (The shooting star is a bearish candlestick pattern. See more below.) 

Does this mean we are headed lower?

Here’s the weekly S&P 500 chart. Shooting star number 1.

S&P 5002,830-0.21%
Russell 20001,260+2.22%
Dow Jones23,723-0.22%
Weekly percent changes 

What is a Shooting Star?

The shooting star candlestick pattern on a weekly chart occurs when a stock opens near the lows of the week, rallies, fails, and closes the week back down near the lows.

Here’s what they look like:

Check out these shooting stars from last week.

Small-cap ETF, $IWM closed down 8.5% from last week’s high. 

Regional Banking ETF, $KRE closed down 10% off its weekly high.

Consumer Discretionary sector ETF, $XLY dropped 5% from its high.

Ouch, Jim. 

Buffett and the Berkshire Meeting

The Berkshire Hathaway meeting this weekend went on as scheduled but without the throngs of investors who annually pour into Omaha.

It was strange and not as optimistic as usual.

Here’s where you can watch the full replay of the event.

And here’s a good read highlighting how Berkshire has not bought into the sell-off.

Here’s a few choice quotes from Buffett:

In the end, the answer is: Never bet against America.

If you had to pick one time to be born and one place to be born … you would not pick 1720; you would not pick 1820; you would not pick 1920. You’d pick today and you would pick America. Ever since America was organized… people have wanted to come here.

We are willing to do something very big, we haven’t seen anything that attractive.

The world has changed for the airlines. And I don’t know how it’s changed and I hope it corrects itself in a reasonably prompt way.

If we owned all of an airline right now, it would be a very difficult decision about whether to accept continuing operating losses.

If these oil prices per barrel prevail there will be a lot of bad debts associated with energy loans. Given that reality on debt in the oil industry, you can imagine what will happen to the equity holders in the oil production companies. 

Sunday Links

Speculative Booms

The Man, the Myth, the Gambler: A Collection of Michael Jordan Betting Stories

Billions Is Back, and It’s More Billions Than Ever

‘The Last Dance’ Episodes 5 and 6

The 2011 NFL Lockout Holds Lessons for the Coronavirus Season

What’s The Catalyst?

The Week Ahead 

And now a brief and well-organized look ahead at the trading week beginning Monday, May 4, 2020:

Economic Calendar:

5/5 April ISM Non-Manufacturing Index (10 AM EST)
5/7 Initial Jobless Claims (8:30 AM EST)
April Unemployment Rate (8:30 AM EST)

Here’s the full Economic Calendar provided by Briefing

Earnings Ahead:

Here’s Earnings Whispers’ great visual.

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