D&D Note (8.24.2020) ~ Markets Rally To New All Time Highs With Reopen Trade + Stay At Home Trade Both Gaining ~
Markets gapped up to open on the Covid-19 convalescent plasma treatment fueling hope to push to new all time highs. However, scientists are doubting it as an effective treatment for patients with Coronavirus.
This bifurcation is evident in the rally today with both the reopen trade (like airlines with Delta gaining) and the stay at home trade (like tech stocks) rallying on the same day.
Both the S&P 500 and NASDAQ closed at new all time highs.
The RNC kicks off today for the next four nights. Some of tonights speakers include Nikki Haley, Donald Trump Jr., Tim Scott, and Vernon Jones.
Kellyanne Conway is leaving the White House to focus on her family.
Telsa continues to defy gravity for no reason at all. The 400% gain this year is essentially all speculation and not based on any fundamentals or reality. The stock is going through a stock split but again stock splits create no real value.
It’s like breaking a $5 bill into five single $1 bills. You still have the same amount of money ($5) just now have five single $1 bills instead of one $5 bill.
D&D is patiently waiting for Tesla to correct in a major way before reinvesting in the stock.
TikTok sues the U.S. government over the Trump ban arguing the Chinese company has been denied due process and is not a national security threat.
Apple price target raised to $520 at Morgan Stanley seeing more upside potential with an Overweight rating.
Deere upgraded to Buy rating at Bank of America on earnings momentum with a price target of $234.
Pintrest downgraded to Neutral rating at Citigroup on social media caution with a price target of $35.
D&D started a position again in Barrick Gold (GOLD) today after the last 5 days have found a base of support at $29 a share. We are hoping to see the stock fall more on current gold weakness with the 50 day moving average of $26.50 and the 200 day moving average of $22. We will be dollar cost averaging into the position with a pyramid style buy strategy.
The DOW index is being reshuffled with Exxon Mobil, Pfizer, and Raytheon Technologies all leaving the index and Salesforce, Amgen, and Honeywell all joining the index.
The fact that Exxon is leaving the DOW just shows you how the world has changed and oil companies are no longer the future and instead its cloud tech infrastructure.
DOW up 1.35%
S&P 500 up 1.00% (3431.28)
NASDAQ up 0.60%
VIX down -0.71% to 22.38
Oil up 0.14% to $42.40 a barrel.
Gold down -0.73% to $1926.33 an ounce.
The WHO has confirmed the first case of reinfection has been documented in Hong Kong. A 33-year-old man was infected with Covid-19 in March and has now been reinfected with a newer mutated strain of the virus.
Global Virus cases: 23.51 million+
Global Virus deaths: 809,999+
U.S. Virus cases: 5.72 million+
U.S. Virus deaths: 176,991+
~ Dave James / Principal Trader and Market Strategist