sp'daily5
VIX'daily3
Summary
Aside from the powerful retracement in WTIC, which pulled the related energy stocks lower, it was a day of micro churn in equity land. The SPX saw a trading range of just 12.48pts. Volatility was itself very subdued, with the VIX settling -1.6% at 14.44.
Tier'1 LMCG
CNBC are naturally continuing to give some attention to the going IPO debacle that is WeWork (ticker symbol: WE... if it ever gets listed).
When you consider some of the other loss making IPOs in market history, its pretty incredible...
UBER, WeWork, LYFT, NIO, and SNAP, are all multi-billion companies that can't turn a profit. *Genuity dates back to 2000: see https://money.cnn.com/2000/06/28/deals/genuity/
Many of these same companies have multiple tiers of stock, each with different voting rights, which I find especially contemptible.
However, even yours truly would not compare the current market to the truly insane tech bubble of 1999/2000.
Perhaps the key question is which of the remaining quintet of tier'1 loss making corporate garbage, will not survive the next recession (whenever that might be)? WeWork and NIO look doomed, and I still see SNAP as similar to MySpace. I would expect UBER and LYFT to eventually merge.
Whilst many seem intent to invest/trade in tier'1 LMCG, there is lot to be said for a nice boring Dow component, such as DIS, MSFT, or HD.
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| More leaving the land of geo-political chaos |
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| Sunset, 6.57pm BST |
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| The mighty moon! |
Extra charts in AH (usually around 5pm EDT) @ https://twitter.com/permabear_uk
Goodnight from London
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