Investors are pinning their hopes for the reopening of the US economy on the potential for wider availability of testing for COVID-19 cases and on drug trials for treatments of the disease.
We have been letting doctors, who have shown the same propensity for predicting this virus as weathermen have in predicting the weather, run the economy, NutZ!
President Trump has halted the daily virus updates, thus, effectively Firing the Dr’s Doom! He is now laser focused on the opening up of America.
Last week’s action
Stocks decline last week, and Crude Oil went negative for a bit on May futures expiry.
The major US stock market indexes declined for the 1st time in 3 wks.
The losses were not that great: DJIA off 1.9%, the S&P 500 down 1.3%, NAS Comp – 0.2%, and the Russell 2000 gained 0.3%.
The Big news last week was when the price for the May WTI Crude Oil futures contract collapsed to -37.63 bbl Monday. The negative print was the 1st time in history the market saw Crude Oil marked below Zero, as no 1 wanted to take physical delivery given the well-documented storage constraints and lack of demand, and the exchange is very strict in its rules on such stuff.
Nevertheless the US stock market ended the week on a positive note and from the looks of the S&P 500’s advance, it looks to me like it is signaling a serious economic recovery in Q-3.
My technical indicators are Neutral with a Bullish bias in here with 2 of my Key indicators having turned Very Bullish.
President Trump is a Wartime President
The President’s approval rating has remained very steady over the course of his Presidency, with about 42% of poll respondents saying they approve of the job he’s doing as President, according to a new The Associated Press-NORC Center for Public Affairs Research.
The Trump Administration believes that America’s voters will credit him for the strong economy before the health chaos hit and will further credit him for reopening America and rebuilding the economy, as the fundamentals going into the Storm were the strongest ever.
President Trump last left the White House grounds a month ago, and plans are being drawn up for a limited schedule of travel within the next few weeks, thus showing the world that the nation is reopening.
The comes along with what the White House sees as encouraging signs across the country, with the pace of new infections stabilizing and deaths declining.
He will also begin to refocus his base on winning a 2nd term in November.
Remember, it is your money so your responsibility, and above all, Always Take What the Market Gives!
Have a healthy week, Keep the Faith!