I debated using the title “Vegas Meets the Market” instead. Why? The S&P 500 was up 3% on Monday as “investors cheered news that an experimental coronavirus vaccine from Moderna showed promising early signs.” And down 1% today (Tuesday) as “a STAT News report raised concerns about the trial results for a potential coronavirus vaccine from Moderna.”
Why are investors making big bets on news that can be completely opposite the next day? It’s like their investment strategy is to put all their money on red or black for one spin of the wheel. However, hope and a spin of the investment wheel isn’t a strategy – it’s just gambling.
What’s in store for the rest of the week? Obviously buyers brought the Holy Hand Grenade of Antioch to the battle of 2,770 as they held their ground last Thursday and have been on a steady march upward until the last hour of today. With the S&P 500 sitting just below the 2,925/2,935 Equilibrium, the question now is do sellers have a grenade in their back pocket? If buyers hold this Equilibrium, the 3,005 is the next stop on the way up. If not, 2,840/2,835 could be back in play.
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