Well, here we go again.
Remember Moderna? Novavax? Gilead? Every two or three weeks, some big announcement comes along that Covid has been cured, or a vaccine has been found, and already-super-high stocks take yet another leap into the ionosphere. This morning is no different.
The market isn’t open yet as I am typing this, but it’s the same mix as Monday and last Friday……….super-strong small caps.
The other interesting twist is that precious metals are getting pounded. It’s been a while since we’ve a big sell-off in gold, but as of this moment, it’s down over $53 per ounce. This lines up with what I was writing about last week, with the support level of 1980 already reached. If the pounding continues, the next support level, and a more meaningful one, is around 1800. Evidently gold is viewed by some as a “Covid is permanent” safe haven. I believe it is much more than that.
The “gold weak, stocks strong” is generally true, with the notable exception of tech stocks. Even with the latest “Covid is no more!” breathless puffery going on, the NQ ain’t buyin’ it, and it’s actually managing to be red right now.
I remain a robust combination of dispirited and disinterested in the so-called markets right now. Conditions have been so severely warped, it’s like we’re living in a financial maze of fun-house mirrors. I thus remain exceptionally light in my portfolio and focused on Slope, and its virtual trading build-out in particular.
