Markets Take Terrible 3-day COVID-19 Data Stretch in Stride

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.

You are trying to access FSI member-only content.
You need to have an active FSI Macro, or FSI Pro subcription in order to read this article.
If you are already a member at FSInsight, please Sign In here. If you don’t have a subscription to FSInsight yet, you can sign up below.

Choose one of our yearly plans to save nearly 20%

We accept crypto via BitPay for yearly subscriptions.
    • Macro
      FSI Macro
      billed anually
      Get access to all the macro research on FSInsight
      • Tom Lee's First Word
      • View from Tom Lee
      • Signal From Noise
      • Portfolio Strategy
      • Technical Analysis
      • Granny Shots – Stock Ideas
      • US Policy
      • Live Conference Calls with Q&A
      First Month Free!
    • Crypto
      FSI Digital Assets
      billed anually
      Get access to all the crypto research on FSInsight
      • Crypto Blasts
      • Tom's Take on Crypto
      • Crypto Weekly Newsletter
      • BitDigest Daily Newsletter
      • Crypto Technical Analysis
      • Benchmark Indices Review
      • Bitcoin Valuation & Misery Indexes
      • Live Conference Calls with Q&A
      First Month Free!
    • Macro + Crypto
      FSI Pro
      billed anually
      Get access to all the exclusive research on FSInsight
      • Looking at code?
      • I am hidden!
      • FSI Macro
      • +
      • FSI Digital Assets
      • Designed by
      • HANGAR115
      • -
      First Month Free!
Disclosures (show)

Don't Miss Out
First Month Free

first 500 users only

FSInsight logo
150 East 52nd St, 3rd Floor, New York, NY 10022

Subscribe to our Free Weekly Report

An insitutional-grade report delivered to your inbox every week.

© 2021 FSInsight. All rights reserved. Developed by HANGAR115.

Illustrations by Karl Wimer.