Well That Sucked.

/ Stocktwits

Tale of the Tape

Good evening folks. Welp, some days you gotta pay the Piper and today was one of them. 

If the market rallied everyday, we’d all be on a beach drinking piña coladas and it would be hella crowded.

Stocks got whacked like Bugsy Siegel. The Nasdaq dropped 5%, the S&P 500 fell 6%, the Dow fell 7%, and the Russell 2K fell 7.6%. We were this close👌 to hitting for the cycle.

Kroger was the only stock in the entire S&P 500 that closed higher.

Every stock was weak, every sector was bloody and this heat map tells the brutal tale.

Nothing outperformed, nothing rallied, and nobody made money except David Tice over at the Ranger Active Bear ETF ($HDGE). Now he’s only down 60% for the last 5 years. 🤣 

S&P 5003,002-5.89%
Nasdaq9,492-5.27%
Russell 20001,356-7.58%
Dow Jones25,128-6.90%

COVID Cases Are Rising

Whenever stocks fall, the media finds a reason in the rearview mirror.

Today, the story resonating was the sudden increase in coronavirus. It’s the second wave chatter and the journos are focusing on the 14 states where cases are rising. Charts like this one from Texas highlight recent growth in places that were not initially hit hard. 

Airline Stocks Struggled

The Airlines struggled to get off the ground today. Here’s their daily performance:

American Airlines – $AAL ▼ 15.51%
Delta Airlines – $DAL ▼ 14.03%
JetBlue Airways – $JBLU ▼ 12.03%
Spirit Airlines – $SAVE ▼ 17.42%
United Airlines – $UAL ▼ 16.11%

Oof!

Here’s a daily chart of the Airlines ETF, $JETS. Maybe the $16 level that was resistance, becomes support. 🤞  

Place your bets…  

Bearish Divergences

This chart from Andrew Thrasher shows the % of stocks in the S&P 500 that have a bearish divergence. You can see that when the % of stocks jumps above 50% a pullback or short term consolidation usually follows. Yesterday it ticked 60%…

Nice chart, Andrew. 👊

Earnings After the Close

Lululemon reported an earnings miss. The stock was down 6% after-hours and the company said it will not provide financial guidance for fiscal 2020.  Here are the numbers:

EPS: $0.22 vs $0.26 est.
Revenue: $652M ▼ 17% YoY

And here’s the press release. 

Adobe beat expectations on the bottom line but missed on the top line. Check out the numbers.

EPS: $2.45 vs $2.33 est.
Revenue: $3.13B vs $3.16B est.

$ABDE was flat after-hours.

Sony PS5 👀

Sony dropped the Playstation 5 today. Check this thing out.

The company said the new device will be available for the 2020 holiday season. We can’t wait to get our hands on it. 

Here’s more from Playstation.

Links That Don’t Suck

📺 The Market Rant: Market Talk with Mike Webster and Irusha Peiris

🔊 Which Jobs Will Come Back and When?

📃 Plastic Rain Is the New Acid Rain

📃 Baseball’s Big Whiff: Where’s the Summer Game?

📃 Backtests vs. Real Life in the Markets

📃 Nasdaq 10,000 – Here We Are …And The Uniquely Risky Future

📃 How Uber Hailed a Deal With Grubhub Only to Let it Slip