Should the market be up more on a staged re-opening of the economy as well as the possibility of a Remdesivir experience?
I struggle to think it should given the run we have had and we remain the same: sellers into strength for the charitable trust today, taking some very big gains as well as a loss that's been bothering me.
Why continue to sell? Because I believe that we have now seen the best of the earnings season and going forward things will get tougher. I like the idea that some good news from Gilead (GILD) could translate into something special, namely a chance to get out of the hospital or, even better, get out of the hospital faster. But even as the news comes from a great hospital - University of Chicago Med - and is not an insubstantial number of participants it is still anecdotal and not against a control.
Nevertheless it is important as a sign that Covid-19 can be beaten with something that's being tested in large scale.
All that said, I am very concerned about a breakdown in oil here after the brokered deal. We do not want to go back and revisit the banks with sagging loans to oil. And I also have to believe that a few more weeks of lower oil prices and we will see more bankruptcy filings.
As for the president's view, I do think that you can take a more positive view of contractors in light of the opening. I would like to see Home Depot (HD) lower to have a better chance of making money in it. Every time you buy it when it is up, you fail.