FANG does not lead today

Nothing to see here

How curious. FB, AMZN and AAPL are up over 3%, MSFT and GOOGL are up almost 1% yet the overall market is down. Oil names are down, financials like JPM are down, GE is –5%, GM and FCAU, recently strong with autos, are down over –2%. SHOP, PTON, AMD, NVDA, NFLX and CVNA, some of the optimistic names if you will, are up.

This break in recent trading pattern is interesting. Apparently the mounting number of corona virus cases has finally attracted some attention in the market as the ridiculous “V” shaped recovery currently priced comes under some scrutiny.

Still, crazy price action in NKLA, CHK and HTZ continues. It is odd to see worthless stock move up 500% in a week. HTZ shareholders understand what bankruptcy means don’t they? The same Robinhood logic that propels TSLA to new highs seems to be working on bankrupt names as well. It seems to be the same manifestation of “commission free” trading that would “explain” why ZM trades at a price/sales ratio of 72. All of this seems to be thanks to M2 money supply growth that has not been seen since records started in the 1960s. 

Does this accelerating Fed response imply that the next crash will see a Fed response 10 times bigger and 5 times faster? Why stop at 10 times, why not make it 1000 times?