Like An Old Shoe – When things seem to be a bit unclear for this market, it dances with who brought it. And that means a default to the growth and technology names as investors grapple with the short-term economic, physical and mental pain wrought by COVID vs promises for a new and better day down the road. The market has done a remarkable job of compartmentalizing but the escalating headlines over increased cases, hospitalizations, deaths and lockdowns is enough to temporarily at least shove the value/cyclical trade back in its box. Why would you blame them either, when even a hint of growth/tech is like strapping a rocket booster to a stocks back. Luminar the case in point, up another 16% today. Homebuilders are on the move higher as well, but that seems more a case of mean reversion after an ugly week, ITB.US losing nearly 4%. Energy would be the biggest profit-taking target after a strong last week and absurd past month and restaurants and hotels also moving lower as California goes into nearly complete lockdown and states on the east coast feel to be on the precipice of the same. But there always seems to be a catalyst set to overcome any obstacles in the market’s way. A massive stash cash, largely by households, could be just that thing as the FDA looks to approve the Pfizer vaccine later in the week.
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