Better-than-expected jobs news gave the market a strong boost this morning, but continued growth in Covid-19 cases is putting some pressure back on. Florida reported over 10,000 new daily cases, which is the biggest jump yet, but the optimists continue to point out that there is no similar rise in deaths.
Once again there is quite a bit of speculative activity in the electric vehicle sector, in part because of some leaked positive news from Tesla (TSLA) . Other names in the group such as Tortoise (SHLL) , Workhorse (WKHS) and Electrameccanica Vehicles (SOLO) are attracting aggressive trades.
The speculative trading narrowed Wednesday and is still narrow now, but traders are not giving up yet. I expect this very aggressive trading to continue for a while, even while concerns about the broader market may build.
Since it is the day before a long holiday weekend, there is likely some desire to lock in gains. That combined with the Covid-19 case news is putting some pressure on the indexes right now. Breadth is still extremely strong with about 5,600 gainers to 1,650 decliners
I'm going to continue to stick with stock picking and am not going to be drawn into the fundamental debate about this market. Yes the indexes feel frothy, the economic news is still quite poor, and the number of Covid-19 cases is accelerating, but the price action simply doesn't reflect much pessimism. Maybe the buyers are fools, but they are making money and I'll stick with them while that works.