D&D Note (5.27.2020) ~ Rotation Continues With Financials Leading And Tech Laggard ~
Markets tried to push higher today with the S&P 500 opening at 3021.72 but as cash trading began we fell down to 2969.75 then rallied back up to 3000 in the afternoon.
In the final hour of trading markets attempted to once again push through the 3023 resistance level. With 20 minutes left in the session the S&P 500 broke through the resistance level to close at the highs of the day at 3036. This marks the first time closing above the 200 day moving average since the market crash.
The rotation from Growth to Value continued again today. The leading sector was Financials with the worse performing sector being Technology.
The dollars fueling the rotation are coming from selling of Mega Cap tech stocks and the other stay at home trades like Zoom Video.
A big question remains… if consumers don’t have a job (we have massive unemployment) do they have disposable income to drive our consumer spend based economy?
The other big question… how much more will the FED continue to support markets?
DOW up 2.21%
S&P 500 up 1.48% (3036.13)
NASDAQ up 0.77%
VIX spiked midday but ended down -1.39% to 27.62
Oil down -4.28% to 32.88 a barrel.
The United States today said Hong Kong’s autonomy is gone threatening the special status and casting doubt on trade.
Elon Musk’s company SpaceX was to launch the first Americans in 9 years from American soil with American built rocket into space today. However, due to weather the launch was aborted and next window is Saturday. This has been an 18 year journey for SpaceX to launch American astronauts into space.
Boeing announced they are laying off more than 6,000 employees due to depressed air travel caused by Covid-19 Pandemic.
Global Virus cases: 5.64 million+
Global Virus deaths: 353,011+
US Virus cases: 1.69 million+
US Virus deaths: 99,783+
~ Dave James / Principal Trader and Market Strategist