D&D Note (9.15.2020) ~ Rally Fades As Stocks Pair Gains Into The Close ~
Tech led the rally in the stock market again today. However, as the day went on stocks began pairing their gains into the close.
Financial Sector was the laggard on the day down -1.36% with JPM down -2.99% and Citigroup down -6.94% today.
TSM was up 6.56% today on all the new processors to come out in coming months specifically on the back of the new Apple products.
Apple releases the Apple Watch Series 6 along with cheaper SE version, also now allowing the watch to not need an iPhone. For the watch they also release Fitness+ (which would compete with Peloton). New iPad released along with cheaper Air version. AppleOne is released as a bundled service which includes Music, TV+, Arcade, and iCloud.
The FED speaks tomorrow and investors are eager to learn more about how they expect to create inflation.
Chuck Schumer calls for HHS Secretary Alex Azar to resign immediately as Democrats open investigation in the administration meddling with CDC reports.
Stock Futures remain flat to down tonight ahead of the FED speaking tomorrow.
DOW up 0.01%
S&P 500 up 0.52% (3401.20)
NASDAQ up 1.21%
VIX down -1.01% to 25.59
Oil up 2.74% to $38.28 a barrel.
Gold down -0.15% to $1953.98 an ounce.
The United Nations Children’s Fund says that at least 24 million students could drop out of school due to the Coronavirus pandemic.
Deaths in young people from Covid-19 in the United States are disproportionately from minorities.
California, Texas, and Florida lead the U.S. in new virus cases.
Global Virus cases: 29.4 million+
Global Virus deaths: 931,167+
U.S. Virus cases: 6.6 million+
U.S. Virus deaths: 195,637+
~ Dave James / Principal Trader and Market Strategist
Dave I’m wondering what your sentiment is around this announcement about SNOW going public later this year.
SNOW actually just IPO’d today and is up 116%. D&D always waits until either the 1st earnings call or when the IPO lockup period ends before we enter into a newly IPO stock. We did the same on the FB IPO where it IPO’d at $38 but then fell to $22 after first earnings call when we entered into the position. We will be doing the same with Snowflake and waiting to buy until post 1st earnings call.
Thank you for that insight.