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COVID-19 UPDATE: Market making "baby steps" towards epicenter, but keep the "dictionary" stocks. Hospitalizations near ATH

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STRATEGY: Market takes "baby steps" toward epicenter, "dictionary" stocks still solid
This headline (one of many) was a major wake up call to financial markets.  A reminder that a binary event exists, to the extent that scientists find a cure or vaccine for COVID-19.

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Source: NY Times

The reaction in equities today was violent.  The S&P 500 managed to surge to all-time highs and we saw the earliest signs of a rotation out of the "work from home" with the NASDAQ 100 (QQQ) down 2%.  The big winners were "epicenter" stocks.

Epicenter stocks and violence of action...
Every time I think about epicenter stocks, the scene from the HBO series "Generation Kill" comes to mind  (based upon Evan Wright's experience embedded during Operation Iraqi Freedom, the book which is even better).  Lt Col Stephen Ferrando, aka "Godfather," quotes General Mattis about the violence of action. (General Mattis doctrine here)  

- once investors are convinced a roadmap exists for a non-pandemic world, we expected a violent rotation into epicenter stocks
- today, in our view, was a "baby step" in that direction

The video in this report is only accessible to members
Source: HBO10%-ish rally in epicenter stocks is only "baby steps"There have been many...

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