Welcome to the Rude Awakening for Monday, November 16th.
Interesting start to today’s markets…
S&P 500 vs NASDAQ
We are seeing some divergence between the S&P and the NASDAQ, and not for the first time.
The NASDAQ was showing a lot of weakness in the premarket, compared to strength in the S&P, and even though now both are in the green, the NASDAQ is lagging.
The S&P is pushing right up on all time highs. We might be able to get above that today.
All of our indices are pushing higher. But the S&P and the Dow are right at their all time highs.
All world markets looking to be in the positive today.
What Sector to Focus on Today?
Our sector rotation map tells us we have money coming into pretty much every sector across the board.
But the one we’re most interested in is energy.
The Energy Select Sector SPDR Fund (XLE) is a good barometer for the whole sector, and it’s up over 5% on the day.
Energy has been a lagger for quite some time, and as of today, it’s outperforming any other area.
However, there is a dichotomy there between natural gas and oil…
The oil futures (CL) are trying to push higher by a significant margin.
The natural gas futures (NG) are a big loser on the day.
So, interesting action in the energy sector.
Another one to keep an eye on is Virgin Galactic Holdings, Inc. (SPCE). They are down on the day, as flights on their intergalactic system are going to have to be delayed due to the pandemic.
And speaking of the pandemic…
We are also watching Moderna, Inc. (MRNA), which is the big news for today…
Another Vaccine Hits the Presses
MRNA came out with results for their Covid-19 vaccine, and this has given them a very strong open. They closed at $89 Friday and opened up this morning at over $100. Now, they’ve settled a bit at about the $95 level.
The top headline on vaccines was Pfizer, with an astounding 90% efficacy rate based on their trial data. Moderna came out even better, reporting that its experimental vaccine was 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.
We’ll have to see how this plays out as more news hits…
On the day, Pfizer Inc. (PFE) is dropping as MRNA is rising.
These are the ones to watch today, folks.
Have a great, safe trading day.
We’ll talk again tomorrow.
Editor, Rude Awakening