First Word

COVID-19 bad news / good news. MIXED NYC: Hospitalizations down. Queens + Brooklyn relapse, Manhattan improve. GOOD: Italy FTSE MIB outperform sync'd with cases. REMEMBER MARKET SYMMETRY

There most notable change in market character, since Tuesday of last week, is the ability to absorb bad news, without an instant "limit down" move. Today, the Dallas Fed (regional PMI) posted a -70, the worst ever reading (since 2000) and yet the S&P 500 managed to close near a recent high.  Many will dismiss the strength today, attributing it to the anticipation of the quarterly rebalance (pensions saw outperformance of bonds in 1Q, thus, will sell bonds buy stocks).  But this effect is not really any different than the mechanical effects of systematic de-leveraging.  Thus, if stocks recover and breach key technical levels up, these should be respected. On the COVID-19, there is a general and subtle shift in the news cadence and thus, reaction and feedback from our clients.  Notably, it seems that investors feel the White House has found its "game plan" and there continues to be rapid positive progress on the healthcare side.  With the availability of quick testing, a much clearer picture of outbreaks can be developed. But overall today, there is mostly good news but there are some setbacks. POINT #1: "TWO STEPS FORWARD, ONE STEP BACK". HOSPITALIZATIONS DOWN.  NEW YORK CITY, QUEENS + BROOKLYN RELAPSE BUT MANHATTAN IMPROVING...Posting daily updates on a regional breako...

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