Topsy-Turvy: While the last number of weeks have experienced an overriding trend or momentum throughout, this week has been a bit harder to pin down. It’s alternated gains and losses, largely dominated by a tech space that knows no quit. Reports that China’s state funds were SELLING overnight after a clarion bullish call earlier in the week caught some off-guard. Add in some concerning market internals and US markets seemed preordained for a soft finish to the week. But a positive report out of Gilead on its much-heralded Remdesivir treatment helped markets reverse course. The dynamic at play seems to be, concerns about a recovery + increased COVID = buy the mega-cap techs. Hints at a possible cure/treatment/resolution/life back to normal-ish? Buy the value/underperformers. Ahead of what could be a severely ugly reporting quarter, banks were bid for, as were autos and energy. Carnival provided an update that if not supremely positive was bereft of negative and those names cruised on calmer waters. But these days of rotation have been less frequent and could be leading to an unhappy ending.
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