D&D Note (6.15.2020) ~ Markets Gap Down On Open Then Rally Into Close With Help From The FED ~
Overnight futures brought markets to gap down upon open today with the S&P 500 beginning the day at 2965. We saw a steady rally from the lows throughout the day to get back into the green midday.
Today was buy the dip but still many stocks getting bid up are highly speculative stocks getting bought by retail investors such as airlines and cruise ships.
Bankruptcy stocks also continue to see a speculative surge and even Hertz warns buyers of their stock that there will need to be a miracle for them to not get wiped out and lose all of their investment.
Help fueling the afternoon rally was the FED announcing today they will expand their buying of corporate debt to include individual companies and not just ETFs.
Both small cap tech and mega cap tech stocks rallied post the FED announcement.
Volatility is still high although the VIX did trade down during cash trading as markets rallied. However, we are still at heightened levels. The VIX has now gone from contango to backwardation.
DOW up 0.62%
S&P 500 up 0.83% (3066.59)
NASDAQ up 1.43%
VIX down -3.63% to 34.78
Oil up 2.29% to 37.09 a barrel.
Gold down -0.27% to 1732.50 an ounce.
SHOP gains over 8% today in trading after announcing a partnership with Walmart.
TSLA gains over 6% on positive Chinese car news.
Texas sees 6th straight day of record hospitalizations. Texas was one of the first states to reopen and have steadily seen a rise in everything Covid-19 related.
Other states seeing rising hospitalizations rates include: Alaska, Arkansas, Arizona, Mississippi, North Carolina, Oregon, South Carolina, Utah, and Vermont.
Health experts warn that a Covid-19 vaccine may not prevent people from getting the virus and thus spreading it.
Global Virus cases: 7.96 million+
Global Virus deaths: 434,536+
US Virus cases: 2.1 million+
US Virus deaths: 115,896+
~ Dave James / Principal Trader and Market Strategist