Merch Store

COVID-19 UPDATE: Residents of Wave 3 states are starting to freak out and wear masks = good

Click HERE to access the FSInsight COVID-19 Daily Chartbook.

STRATEGY: The longest wait...  losing 1,000 points per day until Election day
Equity markets were utterly crushed Wednesday, falling 3% and adding to the carnage over the past 3 days.  There have been factors weighing on markets and if I was to highlight a few:

- Fiscal stimulus "clock ran out"
- Europe entering lockdown after a massive, absolutely massive surge in cases
- Vaccine delays seen as cited by Fauci today
- Biden sweep starting to scare people because of higher taxes and increased regulation
- October tax loss selling season
- Nobody taking risks prior to Election day

So this is an absolutely sickening decline.  VIX surged to above 40.  We are now reaching levels where the market is pricing in significant expected moves over the next few months.  And as the chart below shows, when VIX reaches 40, we are near turning points for both VIX to fall and thus, stocks to find some footing.  So, while this has been an absolute bludgeoning, we think this is a buying opportunity and not a time to sell.

The video in this report is only accessible to members
Source: BloombergDaily cases are still rising, and this is bad news.  And with Europe's cases surging so much that both Germany and France are calling for a month-long shelter in ...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)
You have reached the maximum amount of complimentary reports for this month.
You will receive 3 more complimentary reports as of the 1st of July.
FS Insight Guest PASS

Unlock 2 more articles by joining our newsletter!

Take Your Investing to the Next Level with our Award Winning Research!

Want to receive Regular Market Updates to your Inbox?

I am your default error :)