Tale of the Tape
After the worst jobs report in the history of jobs reports, stocks rocketed higher 🚀🤷🏼♂️
If this confuses you don’t sweat it.
This is the most hated rally ever and so you are not alone. Ironically, it is hate which fuels the ascent. It’s poetry in motion.
But look, even if you are underinvested or just feel that way, it’s still Friday and so you can bask in the glow of two days filled with leisure and perhaps, if you are lucky, some good old fashioned debauchery.
All sectors closed higher. Energy and Industrials led, while Tech and Healthcare lagged. Small-caps bested large-caps. It was a Freaky Friday.
And get this – The Nasdaq 100 is less than 5% off it’s all time highs. Holy cow! All this insanity and we’re right back to the edge of glory for big cap Nazzies. Here’s the $QQQ chart:
Here’s how the major indices closed.
| S&P 500 | 2,929 | +1.69% |
| Nasdaq | 9,121 | +1.58% |
| Russell 2000 | 1,329 | +3.64% |
| Dow Jones | 24,331 | +1.91% |
Unprecedented Unemployment
April’s unemployment numbers were released this morning and they were unprecedented. The jobless rate came in at 14.7% and payrolls dropped 20,500,000 since last month. Here’s the 20 year chart from the Wall Street Journal.
Futures jumped as the numbers were released. Hopefully, the market is telling us things are going to be better soon.
🤞🤞🤞
Here’s a breakdown by sector of the jobs that were lost from The Daily Shot Brief. Leisure & Hospitality is getting crushed. People are not going to bars and restaurants or taking vacations and this is the toll. Very sad to see.
Disneyland Sold Out.
Tickets sold-out within minutes for Disneyland Shanghai’s post-lockdown reopening on May 11.
Demand is there so maybe a rebound is close in the US service based unemployment discussed above. The park will operate at 30% capacity which is still 24,000 visitors per day. Let’s hope this goes well. 🙏
Overnight Gaps De Rigueur
This chart from BlackRock shows the Russell 2000’s overnight vs intraday performance. As you can see, all of the gains are happening overnight.
This can also be seen in the NASDAQ Composite as 4 out of 5 days this week opened on a gap higher. Overnight trading accounted for more than half of the Nasdaq’s gains this week. Overnight risk = Overnight reward.
Heads Up on Revolve Group Y’all
Revolve Group, the fashion retailer for millennials and gen Zers jumped 25% today ahead of its earnings next Wednesday. The stock had heavy volume which tallied +161% its daily average. Someone was eager to buy this stock.
$RVLV earnings are scheduled for May 13 after market close.
Tesla, Full Steam Ahead
Shares of Tesla are up 7.5% since Elon shared his thoughts that the stock was priced too high. Here’s the 15-minute chart.
$TSLA is still below its highs following its earnings report last Thursday.
Elon could probably shoot someone on 5th Ave and the stock would gap up 10%.
Spanish Countryside
Links That Don’t Suck
Retail Stocks & Unemployment Rate Both Break Out!
Winter Always Comes. Why Do We Fail to Prepare?
Emerging Markets Trends with Portfolio Manager David Semple
Who Will Do the Spending?
Americans Are Pumping Gas Again as States Reopen
Google said it will reopen offices at 10-15% capacity starting in June.
Why China Is Withholding Stimulus Amid Coronavirus-Sparked Downturn
HQ Trivia Brings Back Sports Quiz Thanks to Anonymous Investor
