If I were the current administration, I’d be pretty ticked right now. They talk of an “October surprise”, but it is nothing compared to the “November surprise” of what is being hailed as a cure from Covid being announced out of the clear blue sky.
The effect on all markets has been immediate. The Russell is limit up.
Crude oil is even more extreme, blowing over 8% higher.
With equities screeching higher, there is just one kind of stock that isn’t liking this news at all, and it is basically anything that has to do with being stuck at home. For instance, people have become really sick of Zoom, and they are selling with alacrity:
Therefore, all the tech companies that make it possible to be under house arrest yet still get work done are holding back the NQ. As I am typing this, I was describing how it was up only a fraction of the Russell, but as I glanced over, it has gone bright red. The chart below doesn’t reflect this, since things are moving so fast, but as of this clicking on my keyboard, the RTY is limit up 7% while the NQ is down over a full percentage point.
One of the other few assets that is having a bad morning is gold, which is hammered down about forty bucks an ounce.
The amount of stuff that has happened over the past six days is nothing short of mind-blowing. Good luck out there.