The Netflix of China lol

Tale of the Tape

Good evening everyone.

Today was another miraculous day in the US stock market.

The S&P 500 gapped higher, then traded lower to kiss yesterday’s high, then bounced back to close up for its 3rd straight day.

Here’s the 2-day chart of the $SPY. 💋

Retail sales helped fuel this morning’s gap higher, see more below.

Energy led the sectors while Utilities lagged.

Oh and by the way, Technology ETF, $XLK closed at its 3rd highest level ever, just 1.54% from the all-time high. Last Thursday’s drubbing seems like nothing but a faint memory.

Here’s your closing prices on the major US indices:

S&P 500	3,124	+1.90%
Nasdaq	9,895	+1.75%
Russell 2000	1,452	+2.30%
Dow Jones	26,289	+2.04%

Retail Sales 💪

US Retail Sales in May more than doubled expectations. The forecast for the month was 8% while the good ole US of A stepped up with 17.7% growth from the prior month. We are nowhere near the pre-COVID level, however, we did see a wicked fibonacci retracement.

Here are some crazy Retail Sales charts from Bespoke.

Perfectly normal.

62% Fibonacci retracement in retail sales. lol

Tencent Wants IQ

Chinese internet giant, Tencent Holdings, is gunning for the Netflix of China, IQiyi. Specific details are yet to be released, but it’s known that $TCEHY has approached Baidu who owns 56% of $IQ.

$IQ closed up 26%. Let’s hope the Netflix of China is nothing like the Starbucks of China. 😬

New Kid on The Block

Royalty Pharma made its public debut today. $RPRX was priced at $28 and jumped 58.9% to close at $44.50. Not a bad first day.

Here’s the chart from today’s action.