From a healthcare timeline, the past three days have been the worst since early March. We’ve seen back to back record surge in cases, Texas “pause” its opening, Disney delay indefinitely its opening of Disneyland, and Apple close more retail stores. This is just horrific. Moreover, there’s not been any news this week on the healthcare side. And the 2020 election race is becoming tighter and tighter.

In the face of this, we have seen a 3% decline in equities last week despite the awful news, and the VIX barely budged. If this happened two months ago, we would be expecting the SPX to visit 1,700 or lower. I think this reflects the real positioning of the market. Investors have little need to sell because few investors are “uncomfortably” long. The best sentiment metric to track >age 60 investors is the AAII survey, where currently the AAII bulls less bears is -25%, 3rd worst reading since the great crash of 2020.

The video in this report is only accessible to members
Retail investors, age >60, are as bearish now as they were when COVID-19 was burning down NYC. If investors are already bearish and sitting on record cash, downside moves are just not that dynamic. Now, I think a consolidation is healthy. I am not trying to say stocks have to surge from here. But this is not much downside...

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)

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

Articles Read 3/3

🎁 Unlock 2 extra articles by joining our Community!

You’ve reached your limit of 3 free monthly articles. Please enter your email to unlock 2 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free