The Bear Den by Shortside Jonny
Monday, September 7, 2020 –Labor Day Holiday - USA Markets Closed
Tuesday, September 8, 2020 – DIA 281.77 -.55%, QQQ 283.58 – 1.33%, SPY 342.57 -.82%
IBD/TIPP Economic Optimism Index was released showing a 45 print which was down from the prior reading of 46.8%. Below 50 is an indication of pessimism. Equity markets gapped down from the opening and rallies were met with follow on selling pressure, with the indexes closing the day near the lows. News broke over the weekend of a massive “gamma squeeze” related to options purchases by Softbank (SFBTY) forcing dealers to get long the underlying stocks of the options they sold on big technology companies. Tesla (TSLA) 330.21 -21.08% news hit that it would NOT be added to the S&P500 index (SPY). Semiconductor companies were hard hit as well, KLA Tencor (KLAC) 174.47 -9.77%, Lam Research (LRCX) 302.72 -9.13, Applied Materials (AMAT) 55.63 -8.74%, as tensions rose between China and the US over technology-related trade and enforcement issues.
Wednesday, September 9, 2020 – DIA 279.85 +1.61%, QQQ 277.88 +2.94%, SPY 339.79 1.97%
Jolts Job Openings came in stronger than estimated at 6.618 million versus the 6 million anticipated and the 6.01 million last month. Tiffany & co. (TIF) 113.96 -6.44% initiated a lawsuit to enforce a merger agreement with LVMH Moet Hennessey (LVMUY) 95.14 +.26%. Technology shares led the market: Microsoft (MSFT) 211.69 +4.26%, Apple (AAPL) 117.32 +3.99%, Salesforce (CRM) +3.8%, Qorvo (QRVO) 122.71 +7.54%, Nvidia (NVDA) 508.6 +6.73%, Skyworks (SWKS) 137.61 +5.17%. Standout performers on day were Zoom (ZM) 389.98 + 11%, Tesla (TSLA) 366.28 +10.92%.
Thursday, September 10, 2020 – DIA 275.79 -1.45%, QQQ 272.34 -1.99%, SPY 333.89 -1.74%
Producer Prices Ex-Food and Energy came in at a robust and higher than anticipated up .6% versus .3% expected. Continuing Jobless claims came in much higher than expected with 13.385 million vs. an estimate of 12.925 million. Initial jobless claims were also higher than expected 884K versus 846K. The market gapped higher on the open but succumbed to late day selling pressure. The Senate coronavirus relief bill failed on a party-line vote. Technology stocks NetApp (NTAP) 44.37 -4.72% and Citrix (CTXS) 134.88 -4.72% were the hardest hit in the Nasdaq100 (QQQ). Tesla (TSLA) 371.34 +1.38% and Align Technology (ALGN) 327.95 +1.24% faired best in QQQ. Crude oil and oil stocks came under selling pressure, as a surprise buildup in inventory in crude supply forced prices down, EOG Resources (EOG) 38.00 -9.22%, Apache (APA) 12.01 -8.67%, Occidental (OXY) 10.19 -7.95%,
Friday, September 11, 2020 – DIA 277.09 +.47%, QQQ 270.45 -.69%, SPY 334.09 +.06%
Consumer Price Index CPI came in .4% vs. .3% expected. Ex-Food & Energy was .4% vs. the expected .2%. CPI Year over Year came in slightly higher than expectations 1.3%. Ex-Food & Energy as well at 1.7%. Markets opened strong but came under selling pressure late in the morning with Big Cap tech seeing heavy selling pressure. DocuSign (DOCU) 197.94 -3.89% saw continued profit-taking after seeing a parabolic spike on Sept 2. Popular consumer company Lululemon Athletica (LULU) 313.39 -2.07% continued its correction, selling off from its recent peak on September 2nd when it traded up to 399.90. Showing good relative strength in the Nasdaq 100, Cognizant (CTSH) 68.18 +4.00% which appears to be forming a potential breakout from a cup with handle pattern. The market closed mixed with the S&P 500 flat, Nasdaq was weak and lower as well, with the DJIA outpacing and up a bit.
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