MaR Nov 10 2020

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Market Report for Nov 10 2020

Bull markets are born in pessimism, grow on scepticism, mature on optimism and die on euphoria

Be careful where you invest your money.

Trade Zones:
None

Market Trend:
Up

Market YTD:
Nasdaq Composite +30.6% YTD
S&P 500 +9.9% YTD
Dow Jones Industrial Average +2.2% YTD
Russell 2000 +2.2% YTD

Market Volume:
NYSE Vol: 1.7 bln (A)
Nasdaq Vol: 5.8 bln (A)

New Positions:
None

Portfolio % of Return:
Stocks: +739.23
FX & Comms: +2.25

PORT Nov 10 2020

Comments:
After PFE made their announcement of the COVID-19 vaccine being more than 90% effective, the market bought into the sectors we were discussing only the day before on the weekly webinar. This is a knee jerk reaction to the good news. While it is undoubtedly good news, the finer points were probably missed by many traders who were buying stocks at the highs of the day.

The change in the sentiment is based on euphoria and not anything substantial yet.

Points such as the distribution factor. PFE have to fulfil their obligation to US, UK, certain countries in Europe and Japan. There are 330 mln people in the US and 66 mln in UK plus the other countries. The number of vaccines being made available in Q1 fo 2021 will be less than the requirement for all the population of these countries PFE have deals with. However, there will be other vaccines available so that will help but other companies need to provide their phase 3 results and then their timelines.

We will be adjusting our portfolio soon.

Let’s go trade!