Your Weekly Blip 1/29/21

Your Weekly Blip 1/29/21

Stocks finished the week with a thud as the Dow fell 620 points to close at 29,982. Trading volume for the Dow was up while for the NASDAQ it was well off. For the week the Dow lost over 500 points or roughly 1.7%. IBD still shows markets in rally mode and market indexes are back to support levels after failing to break out above the 31k mark.
The Gamestop saga continues and now Robinhood is under pressure for restricting its customers from trading in stocks that are caught up in the battle between short sellers and socially connected Joe Sixpack investors. One survey showed that upwards of 70% of Robinhood’s customers are considering leaving the platform and are furious at being locked out. High profile short seller Citron threw in the towel and said it will exit the short business after being in it for 20 years. Who’s next….Silky Seymore (aka David Einhorn)? How this short seller battle plays out is anyone’s guess but long ago one guru said “markets can stay irrational longer than you can stay solvent”.
Seattle based timber giant Weyerhaeuser posted record earnings for 2020 as Q4 revenue was up 33% and net income jumped from four cents per share to forty eight cents per share. The wood products division turned in its best performance in company history as log, lumber and OSB prices increased significantly while sales were higher due to strong demand from home building and the remodel market. Going forward CEO Devin “Stocky” Stockfish said he was encouraged by positive tailwinds that continue to bolster the housing market.
Troop 100 hosts a Court of Honor this weekend in the parking lot at Ray’s Boathouse in Ballard. Scouts will sit in cars and when their name is called will walk up and get their rank or merit badge. This should be fun. I am going to see if I can rent an old Ford Scout and drive that to the event.