“OK, campers, rise and shine, and don’t forget your booties cause it’s cold out there. It’s cold out there every day.”
Yeah, it looks like someone put in last Monday’s tape in. Sunday night pop higher. News in the wee hours of morning about a Covid vaccine. Explosion to record highs. We saw it last week with Pfizer, and we see it this morning with Moderna:
Interestingly, Pfizer stock is not too thrilled with the news from their competitor. You can see the huge pop last Sunday (green push higher, which is where the CEO dumped his stock) and this morning’s slippage:
The news is a positive for assets, but it’s absolutely more muted than a week ago. Look at the USD/JPY below. Last Sunday, in green, the US dollar absolutely roared higher. This morning, it pupped up some, but it’s already losing some of the pop. It’s up all of 0.26% as I am typing these words.
The “muted-ness” is shown in the /RTY small caps as well. Last week, the move was so strong that they had a limit up before the market opened and a higher limit-up after the opening bell. There’s no need for such restrictions right now. The /RTY is up, to be sure, but it’s nothing like last week.
Here’s a closer look at the /RTY showing the initial surge and the “burn off” that’s happening at the moment.
Finally, the odd man out continues to be the NASDAQ, as equities contemplate that maybe we won’t spend the rest of our natural lives getting trim on Pelotons while binge-watching Netflix on one screen and doing a Zoom meeting on another.