Just beneath the veneer of this market is something ugly. We’re apparently running higher because WTI is at $14. That alone is stupid. But if you compound that by the extravagance of the restaurant sector — well, one can make an argument for a bubble being created. This is not hyperbole. WING is +100% the past month to a NEW RECORD HIGH. The stock was struggling before the crisis. How does the closure of their stores cause the shares to hit a record high?
You tell me.
JACK is higher by 140% — because EVERYONE is apparently eating out. Or not.
The restaurant index is +50% the past month.
Today’s tape is being led by them, gold, and healthcare. But on the downside is just about every other important industry that faces the consumer. We have SHARPLY lower prices in apparel, airlines, REITs — you name it. I have a Corona Fears Basket in Exodus and have been tracking it all day. It was up 2% at the open, then 1.1%, then 0.6%, and now it’s not up at all but unchanged.
The Nasdaq is up 2.7%, but the smaller caps are up just 1.5%. This could be another one of the markets elaborate ruses, which is why I am 90% cash now. But I think now could be a good time to apply some shorts, especially into the final hour of trade. Should we get a fade in crude, we’ll tank. This is a LOW CONFIDENCE trade — but there is extraordinary weakness in stocks like MAC, LB, AEO, and all of the airlines today. I suppose we can run without them and the WING can go up another 50 points from here. Heck, anything is possible — but not likely.
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remember when Bush was sending us all $235 and telling us to go to the mall and go to a restaurant because the economy depended on it? well it’s like that, but also with the hidden enemy
$600. I gave it to UNICEF when McCain picked Palin.
That was cheese to preempt any bitching by taxpayers about the cost of our many post 9/11 mid-east wars. “No prob, you’ll actually MAKE $600. See.”
big spender
searching for storage devices of value
Someone is intentionally pushing markets higher.
1984. Jeez, er, I mean, fuck me.
Prop them up so they can slam them down later.
That’s fine but I’m getting bored. I want money right now.
Pretty clear they want some retail longs to join back, and shorts to be scared before the fallout
Full –
Court –
Press
last night. No fewer than 10 times dow futs lost the .3-.4% increase and were yanked back. (2 more pump levels before/after europe) They didnt want bears to, get, a follow through
Farcically-
intentioned
Added some names to IRAs yesterday and I’m already tempted to sell. What a bounce.
Perhaps the chain restaurants got that big stimulus grant/loan/whatever and are buying back stock. Third quarter revenue/earnings will be the tell as second is going to be a disaster.
That being said Chik-fil-a (private) has the longest lines I’ve ever seen at their drive through only store here.
Yeah anything with a drive through has long ass lines. Surprised many Starbucks around me that have drive thrus are closed though.