D&D Note (9.8.2020) ~ Selloff Continues Into 3rd Trading Day After Market Got To Frothy Overbought Conditions Tesla Falls 21% Today For Largest 1-Day Drop ~
The selloff that started last Thursday has carried over into todays session after the long holiday weekend.
Tech had been leading the frothy market going up (on the back of artificial things like the Apple and Tesla stock splits) and are now leading the markets down during this correction.
Technicians today were watching the S&P 500 to see if it would close below Fridays intraday low of 3349 point. The technical levels below are the 50 day moving average and then the 200 day moving average.
The selloff intensified into the close with markets struggling to hold onto those Friday lows.
The NASDAQ 100 is hovering right at the 50 day moving average after selling picked up in the final minutes of trading. The index is now down 11% in a technical correction.
The S&P 500 could not hold the Friday low which portends we should at least test the 50 day moving average.
Tesla got snubbed from being added to the S&P 500 (which many recent investors had been banking on) and falls 21% today which is the worst 1-day loss on record for the stock. The S&P 500 ended up adding Etsy, Teradyne, and Catalent. Over the last week Tesla has dropped 30% into a bear market.
Apple announces September 15th event where the company is expected to announce their new products, however the new iPhone might not be unveiled until later in the year. Over the last week Apple has dropped over 15% and why D&D took profits off the table last Wednesday on the first sign of weakness in the tape.
Roku raised to Overweight position at Wells Fargo on Ad potential with a price target of $215.
Wynn downgraded to Neutral position at Goldman Sachs on Macau exposure with a price target of $95.
Draft Kings initiated as a Neutral position at Bank of America on growth prospects with a price target of $40.
DOW down -2.25%
S&P 500 down -2.78% (3381.84)
NASDAQ down -4.11%
VIX up 2.31% to 31.46
Oil down -7.29% to $36.87 a barrel.
Gold down -0.15% to $1930.83 an ounce.
Dr. Fauci says a Covid-19 vaccine is ‘unlikely’ to be ready by the November 3rd election, and more likely to be ready by “the end of the year.”
NY Gov. Cuomo says Trump is ‘actively trying to kill New York City.”
Global Virus cases: 27.42 million+
Global Virus deaths: 894,163+
U.S. Virus cases: 6.31 million+
U.S. Virus deaths: 189,456+
~ Dave James / Principal Trader and Market Strategist