REASON FOR YESTERDAY'S DROP
It was the third attempt in the last 4 days to get the SPX above 3185, and it failed again. Yesterday's excuse for pumping the breaks on this northbound train was the coronavirus.
For those who didn't get enough quality time quarantined with your family, there is no reason to have a feeling of loss. The media and some politicians are hinting at a second round. This is surprising to most people who were under the media's false information hypnosis that the second round would not come until the fall when our rotation around the sun gave us less sunlight.
Anyway, why not have a second quarantine? We saw how people used the months to better the world by tearing down Gandhi statues that obstructed our view of nature. It is no surprise that the virus cases are increasing.
We can now test. When there were no tests unless you were in the ICU, almost no one had the disease. India barely tests people, so they barely have any corona positive people. Great work keeping the virus at bay.
People also had the pea-sized pendulum in their frontal lobe swing the other way yesterday. Three months ago, if you got within 20 feet of people without a Hazmat suit, a verbal altercation could occur. Now that the country is slowly reopening, people have taken that as a green light to ignore social distancing rules and masks are optional.
Masks are now more of a social commentary and a barometer of how “unmanly” you are, and should only be used to hide one's identity when rioting. Capitalism is such an evil scourge that it needs to be taken apart by burning down a convenience store while live streaming on your $1,100 iPhone. Once successfully accomplished, you can reward yourself with a $8 Venti Iced-caramel cappuccino with a dusting of nutmeg and a dollop of foam from Starbucks, then running from the scene in your $250 Air Jordans. There is a term for these sophomoric hypocrites: “Champagne Socialists”.
Unfortunately, the Champagne Socialists, along with more testing, is the reason for increases in the coronavirus numbers. It was these numbers coming out since Monday that finally spooked the market yesterday as some governors alluded to the strong possibility of shutting their states down again.
People were shocked yesterday when the SPX hit its low of a -54 net change, forgetting that just a few months ago, we were moving 100+ points a day and had a down -200 day. By the end of the day, traders put things back in perspective and the SPX settled down -17.89 (-0.56%). The Dow took a bigger beating, closing down -361 points (1.39%).
We have been seeing a tug-of-war going on with coronavirus news having traders running out of tech and into travel, and then reversing the next day. With earnings coming out later in the month, TSLA testing 1400 again, and AAPL showed positive numbers despite a negative market. How cool would it be to have your self-driving car take you to a “statue tipping party”, and then picking you up before the police arrive? That is a Batman move! Wait...that is a Joker movie done by stealing Batman's car.