Your Tuesday Market Blip 2/5/19

Your Tuesday Market Blip 2/5/19

Stocks continue to move higher. Both IBD and BTS are now in “green light rally mode” as volatility has fallen and the last jobs report lent support to the upside argument. The Dow closed at 25,411 up 172 points on heavy volume.

Its “T” Day 2019! Cleantechnica reported that the first shipload of Tesla Model 3’s have hit the beeches of Europe. See our Facebook page for the article. As Detlef Schrempf would say: “Achtung baby!” Also on our Faceplant page check out the Super Bowl ad by Audi in which they announced that 1/3 or their vehicles will be electric by 2025. What struck me about the ad was that the car did not move! The guy just sat there in a dream state while choking on a cashew. Could this be a sign that the car is not yet ready for the road while Tesla is well down the path of production and sales? The ad made me recall an article written last year by a German engineer who said EV cars which German manufacturers are planning to roll out in the next couple of years will not be as good as the Model 3 is today. While I don’t know if this is true the delivery of 3,000 Model 3’s to Europe could be a sign that disruption is hitting the German auto makers right where they live. Tesla also announced it had purchased a company called Maxwell which makes ultracapacitors. Tesla paid a couple hundred million on the deal showing they are not standing still. Ultracapacitors are high capacity, fast discharge devises that can protect and prolong battery life while adding insane bursts of energy and potentially faster charging times.

Shares of Boeing crested the $400 level for the first time thanks to news that the company wants to increase 737 production from 52 planes to 57 planes per month. One big factor in the equation will be the ability of suppliers like Honeywell, GE and Pratt & Whitney to produce components like engines, fancy chrome wheels and fuzzy pink dice for the cockpit. Boeing CEO Dennis “Mr. Teflon” Muilenburg hopes to reach the production goal by June although I am not sure he will resort to sleeping on the factory floor like Elon Musk did.

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