Roses are red,
Violets are blue,
Markets are green,
And so are your portfolios.
— more on that in the “Overall Market” section.
Beyond the overall market, this company got a few percentages gain, that company got a few percentages gain, everyone got a few percentages gain, except for shares of one specific sector — more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, whatever fees Robinhood app has saved investors in the last few months just costed them in possible gain by not allowing the users to sell their stocks on the day of recovery — more on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: All three indices were in agreement about the direction of the market in the exact opposite direction of the entire last week. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: The overall market was green, but not Bitcoin. Bitcoin’s price is in the $8,000 range now.
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What Does The Recovery Mean?
All three indices recovered by at least 4% on the first day of the week, and investors are excited about the future once more. Is the excitement justified?
First thing first, we don’t know the answer to that question for sure. However, we have a few logical arguments against the sustainability of the market rally. The impact of coronavirus on many companies around the world, including in the U.S., is widely unknown, and we still don’t know about the magnitude of the problem yet. Secondly, it’s not unheard of to see a small recovery before the market continues its descent in similar situations in the past.
So, just like we should have been cautious as the market fell, we should also stay cautious as the market recovers. Anything can happen … That’s the nature of the market.
Everyone Was Up.
So, what happened?
Shares of every stock we have been monitoring on our coronavirus watchlist were up. Apple (Ticker: AAPL) was up more than 8%. Tesla (Ticker: TSLA) was up more than 11%. Even Costco (Ticker: COST) was up more than 9%. Thanks to the sharp decline last week, and excitement to buy stocks on the cheap, and the expectation of some form of support by the Feds, most of the stocks directly or indirectly impacted by coronavirus were up on Monday.
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Only One Sector Didn’t Feel The Excitement.
So, what happened?
While the rest of the market rallied on Monday, shares of most cannabis stocks continued their customary decline. Shares of Canopy Growth (Ticker: CGC) dropped more than 3%, as did shares of several other big names in the cannabis industry. Even an overall stock market rally has nothing to do with the lackluster performance of the overall cannabis industry and the lack of leisure use of cannabis. That sector has to wait a bit longer before it sees recovery.
So what happened?
Robinhood App was once known as the savvier of do-it-yourself investors. It’s the company that introduced commission-free investing and saved investors millions in commission fees. However, some sort of technical problem on the day of the stock market recovery may have cost the company millions in investors’ trust. It wasn’t too difficult to see #RIPRobinhood across social media as investors were angry enough to switch to other platforms.
Source: Trade Stocks