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COVID-19 UPDATE: Groundhog day... another day, another +5% for mega-caps

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FYI, we will be following a shortened publication schedule this week:

- Wednesday morning (today)
- Thursday morning (9/3)
- Friday morning (9/4) NO REPORT

Weekend

- Monday morning (9/6) NO REPORT
- Tuesday morning (9/7)


STRATEGY: Another day, another big move in mega-caps
On the first day of the month equities were up ~1%, but the move was entirely led by the mega-caps.

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Source: Groundhog Day

This feels like a scene straight  from "Groundhog Day" and we are waking up to another day of Apple rising 4% (see below).

The video in this report is only accessible to members
Source: CNBCThe reason this surprises me is that we have been getting good COVID-19 case data and pretty decent economic data.  Today's ISM manufacturing came in at 56.0 which is well above the 54.2 last month and 54.8 Street consensus.  So the economic recovery is still seeing momentum, even in August.  And daily cases are flat vs 7D ago, which is not bad.The only negative development that bears watching is the divergence with VIX rising and stocks rising.  This is pretty unusual, as falling VIX = rising stocks.  So this bears watching.And something Rob Sluymer, our head of Technical Strategy, has flagged is the fact that the S&P 500 is making new highs...

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