D&D Note (5.22.2020) ~ Probability Now Higher For Breakdown Not Breakout ~
While we are still technically in a Bullish Trading Range, markets are trending more to breaking down out of range than breaking out above the 200 day moving average (for round number we need to break out above 3000 on S&P 500 and breakdown the level is roughly 2790)
The overall slope of the 200 day moving average is still trending down which is Bearish pattern.
Tensions between China and United States are still high and probably won’t be fully baked into stock prices for another two weeks.
The reality is America is going to have more businesses going out of business before they can even reopen, more corporations filing bankruptcies, more businesses being forced to lay off workers they just hired back, and earnings are going to be nonexistent.
The S&P 500 only went positive to close in last 15 minutes of cash trading.
DOW down -0.04%
S&P 500 up 0.24% (2955.45)
NASDAQ up 0.43%
VIX down -4.64% to 28.16 (VIX is the so-called fear index).
Oil down -1.06% to $33.56 a barrel (WTI).
Through D&D‘s consolidated, diversified, weighted, good balance sheet, digital cloud economy focused portfolio; we managed to once again beat the markets with a gain of 0.88% on the day.
D&D winners on day:
CGC up 6.41%
UNLRY up 5.20%
SHOP up 2.84%
PYPL up 1.53%
FB up 1.50%
CRM up 1.48%
AAPL up 0.68%
GOOG up 0.54%
WNS up 0.53%
DIS up 0.14%
V up 0.13%
MSFT up 0.12%
D&D Losers on day:
TSM down -1.87%
TSLA down -1.23%
JPM down -0.78%
AMZN down -0.40%
BRK.B down -0.01%
New study shows Coronavirus patients treated with Hydroxychloroquine are more likely to die by 34%. This the same drug the President has “said” he has been taking for two weeks.
South America according to WHO has become the new epicenter of Covid-19 outbreak.
NBA legend Patrick Ewing has tested positive for Cornovirus and has been hospitalized.
American loosening of restrictions over the Holiday weekend is likely to create a new surge in cases.
Many cities in the American Southeast are already facing max ICU bed capacity the same time their states are reopening.
Global Virus cases: 5.15 million+
Global Virus deaths: 335,063+
US Virus cases: 1.58 million+
US Virus deaths: 95,052+
~ Dave James / Principal Trader and Market Strategist