D&D Note (4.13.2020) ~ Markets Come Back to Reality Ahead of Earnings Season ~
In overnight trading US markets where under immediate pressure as expected after closing Thursday at the 2790 retracement on the S&P 500. The downward momentum continued through cash trading today but did pare losses off the lows in the last hour. Then as what has become the norm in the final 10 minutes volatility picked up with markets dropping back down half a percent then gaining back to fall again… Roughly a 0.60% trading range in final 10 minutes.
Earnings Season kicks off this week with banks starting to report Tuesday. All eyes will be on any guidance companies are able to provide.
Low volume today compared to recent trading sessions with many global markets closed for the Holiday.
DOW down -1.39%
S&P 500 down -1.01% (2761.63)
NASDAQ up 0.48%
Most likely we are now in a very wide trading range from the March lows to the recent highs of last week.
With a diversified portfolio even on days like today you can beat the market. Today D&D finished up 2.26% while the S&P 500 was down 1.01%.
D&D Gainers on the day:
D&D Losers on the day:
Tesla was up on news they are producing all Chinese Model 3s in China and therefore have no import tax. This is why the China factory was a major plus for the company.
Amazon gains on the day on back of company lifting the essential goods shipping priority.
VIX gained on the day then fell into the close to 41.36 down -0.74%
Oil moved from gains to losses falling -0.35% to 22.68 a barrel. Most investors see the OPEC+ cuts as not being deep or long enough.
Gold finished up 0.69% to $1,764.90
The FED announced they will reduce frequency of the overnight and 3-month Repo actions after stabilization of markets.
Bernie Sanders endorses Joe Biden forming unity in the party.
New York Governor Cuomo has conference call with Northeastern Governors to coordinate reopening State economies. Gov. Cuomo said, “if it wasn’t the federal government’s authority to close the economy, why is it their responsibility to open it?” Pennsylvania Governor Tom Wolf expressed his though that its the States that decide when to reopen their economies.
~ Dave James / Principal Trader and Market Strategist