Stock Market update: May 2020

Stock Market update -May 24

We had a huge overnight rally on Sunday, followed by mostly sideways action the rest of the week. Seems like most of the market movement lately occurs in the overnight session!

We closed the week on the SPX around 2950, the high of the recent trading between 2800 and 2950. We'll see what next week brings -finally a breakout, or fall back into the trading range?

This week Hertz filed for bankruptcy,

These 14 retailers and restaurant chains have filed for bankruptcy or liquidation in 2020

Bonds & Gold were still sort of in a trading range, and Oil continued to recover a bit higher.

Stock-market traders brace for ‘dogfight’ as S&P 500 lingers below its 200-day moving average

Coronavirus live updates Coronavirus maps

Coronavirus update: U.S. death toll approaches 100,000...

S&P 500 market crash recovery (chart) ...top of the range

High yield Corporate Bonds (HYG) -rallied this week (2yr chart)

Investment grade Corporate Bonds (LQD) -Fed recovery-(2yr chart)

Market concerns: Coronavirus... Unemployment

Pops:

Drops:

Over $25 Trillion in debt! See Debt Clock on the left, or here...

I expect in time we will see this skyrocket with all the new debt being added.

New all time highs: BJ, LULU, MDB, NVDA, OKTA, SHOP, SPLK, TWLO, WIX. and more...

All time lows: LK

Options watch: S&P 500 Implied Volatility (CBOE VIX) -continuing to pull back!

Link to high IV stocks

High Options volume:

	ETFs	SPY, IWM, QQQ, GLD, GDX, USO, XOP, VXX, XLF, XLE, FXI, EEM EWZ,
	Stocks	AAPL, AMD, BAC, BABA, DIS, FB, MU, NFLX, NVDA, ROKU, TSLA...

Stocks on the move:

Next week:

	M	T	W	T	F
EARNING:	AZO,	,	,	COST, DLTR/DG, ULTA
Events:

This week's charts:

$NYA -NYSE Composite -still consolidating

(IWM) Small-caps -ditto

Links...

10yr Interest Rates -still veery low

Labor Force Participation Rate (use 4 year chart) -crashed

Fear & Greed Index

ETFs - Ranked by Volume
S&P 500 Sector performance -

Commodities/Futures (charts):

Crude Oil rallied nicely again, closing near 33.56

Gold dropped a bit, closing near 1734 -holding over $1700

The US Dollar was down a bit, closing near 99.80

The 30 year Bond was down a bit, closing near 180.06

News:

Dow Jones, Up 750 Points This Week, Led By P&G Stock; Nasdaq 100 Delivers These Big Winners

Central banks are creating ‘fake markets,’ Bank of America strategists say

The UK just sold its first ever negative-yielding government bond

Existing Home Sales Plunge 17.8% Much Worse is on the Way

Walmart is shutting down Jet after spending $3 billion on it in 2016

China's Debt-to-GDP Ratio Surges to 317 Percent

We dropped from the recent highs around 2950 this week on the SPX, forming a possible double top in that area. That also matches up with a resistance level seen in Sep 2018 and May 2019, the Jan 2018 top, and congestion from Apr 2019 thru Oct 2019 when the markets lifted off after the Fed started the nightly Repo money drops! We are now below that Oct 2019 level.

Going forward, we could see further pullbacks, given the rejection twice at the 2950ish level. In the bigger context, this could be the resumption of the big downtrend that started in Feb, followed by the bounce to 2950, and now a continuation of the downtrend. We'll see.

We also have a few more earnings reports this week, including NVDA and many of the big retailers.

This week J.Crew and Neiman Marcus and J C Penney filed for bankruptcy,

Retail Sales – R.I.P.

Bonds & Gold were flat, and Oil continued to recover from the earlier price disaster.

Coronavirus live updates Coronavirus maps

S&P 500 market crash recovery (chart) ...choppy week

High yield Corporate Bonds (HYG) -holding up so far (2yr chart)

Investment grade Corporate Bonds (LQD) -Fed recovery-(2yr chart)

Market concerns: Coronavirus...

Pops:

Drops:

Over $25 Trillion in debt! See Debt Clock on the left, or here...

I expect in time we will see this skyrocket with all the new debt being added.

Bonds were up a bit-chart (link)

10yr rates are low (chart)

New all time highs: BILI, CHGG, DKNG, DOCU, ETSY, JD, NVDA, NFLX, NET, PTON, TEAM, SHOP, WIX

All time lows:

Options watch: S&P 500 Implied Volatility (CBOE VIX) -continuing to pull back!

Link to high IV stocks

High Options volume:

	ETFs	SPY, IWM, QQQ, GLD, GDX, USO, XOP, VXX, XLF, XLE, FXI, EEM EWZ,
	Stocks	AAPL, AMD, BAC, BABA, DIS, FB, MU, NFLX, NVDA, ROKU, TSLA...

Stocks on the move:

Next week:

	M	T	W	T	F
EARNING:	BIDU,	WMT, HD	TGT, LOW	NVDA, INTU	BABA
Events:

This week's charts:

$NYA -NYSE Composite -consolidating

(IWM) Small-caps -ditto

Links...

10yr Interest Rates -still veery low

Labor Force Participation Rate (use 4 year chart) -crashed

Fear & Greed Index

ETFs - Ranked by Volume
S&P 500 Sector performance -

Commodities/Futures (charts):

Crude Oil rallied nicely again, closing near 29.65

Gold saw a nice rally too, closing near 1754 -holding over $1700

The US Dollar was up a bit, closing near 100.38

The 30 year Bond was up, closing near 180.78

News:

Buffett's Berkshire Hathaway trims exposure to banks, sells out of Travelers

Bankrupted JC Penney plans to spin its properties into separate real estate company

U.S. state attorneys general likely to bring antitrust lawsuits against Google

Alibaba, Walmart and Target are about to show retailers’ view of the pandemic

Gold Is Breaking Out - Here's the Trade

Germany plunges into recession as coronavirus hits

People mostly staying home are still getting Covid-19—here’s the problem and what to do about it

Stock Market update -May 10

We got a nice rally this week, with the market now seemingly heading back to the recent highs near 2950 on the SPX.

Super high unemployment numbers were reported (worst since 1929!), but the market rallied anyway... taking out the shorts?? Most of the big earnings reports are now behind us...

Bonds & Gold were flat, and Oil continued to recover from the earlier price disaster.

Coronavirus live updates Coronavirus maps

Coronavirus deals U.S. economy Great Depression-like job losses, high unemployment