D&D Note (6.1.2020) ~ Markets Shrug Off Protests And Rally ~
Algorithms don’t trade on fear. So while humans all saw the chaos over the weekend around America, simply put the computers don’t care.
For the most part protests in American cities have been peaceful and its only a small amount of people not related to the protests that have caused riots and burning of buildings and cop cars.
Market futures were down overnight and opened lower today but indices rallied throughout the day.
Manufacturing data gives glimmer of hope that the worst is behind us with latest ISM number. This certainly helped boost buying today.
China halts some US farm imports including soy beans which put downward pressure on various commodities.
A recent survey of global CFO’s reveals that 51% expect to see the DOW retest below 19,000 before resuming again to all time highs. However 1/3 of US based CFO’s say the market can reach all time highs again without seeing a double dip.
This just highlights the current push & pull between Bulls & Bears and why we remain roughly trading sideways to up.
DOW up 0.36%
S&P 500 up 0.47% (3058.77)
NASDAQ up 0.72%
VIX up 3.16% to 28.38
Oil up 0.17% to $35.55 a barrel.
Many epidemiologists are concerned the recent widespread protests will trigger a 2nd wave of Covid-19 cases. Don’t forget there is a 14 day incubation period.
Many state and city officials such as the Mayor of Atlanta have urged all protestors to go get a Coronavirus test.
Global Virus cases: 6.2 million+
Global Virus deaths: 373,883+
US Virus Cases: 1.79 million+
US Virus deaths: 104,702+
~ Dave James / Principal Trader and Market Strategist