COVID-19 UPDATE: Worst 3-day stretch of COVID-19 data since late March, but markets take in stride. Updating "trifecta" epicenter stock list +3 names. 28 total.

From a healthcare timeline, the past 3 days have been the worst since early March -- we have seen back to back record surge in cases, Texas "pauses" its opening, Disney delays indefinitely opening of Disneyland, and Apple closes more retail stores.  I mean, this is just horrific.  And we have not seen any news this week on the healthcare side.  And 2020 election race is becoming tighter and tighter.  In the face of this major setback, we have seen a 4% decline in equities, which reversed today into a 1% rally. 

This is quite interesting to us.  This is the worst stretch of news since the dark days of March -- a new all-time high in cases.  Yet:
- VIX barely budged
- Stocks fell for 1D
- If this happened two months ago, we would be expecting S&P 500 to be visiting 1,700 or lower

The video in this report is only accessible to members
I think this reflects the real positioning of the market.  Investors have little need to sell because few investors are "uncomfortably" long.  Remember that WSJ article a few weeks ago about how 30% of Fidelity account holders went to 100% cash?  Well, the best sentiment metric to track >age 60 is the AAII survey.- this week, the AAII bulls less bears is -25. - this is the 3rd worst reading since the great crash of 2020Think about that!&nbsp...

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

More from the author

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free