'You're fired'  is the tidal wave of calls for President Trump to go; whether by resignation, or by imposition (intervention?) by those closest to him. Odds of a move like the 25th Amendment were probably less likely than simply Nixonian type of a moment, perhaps including the Marine One helicopter. However now that the President recorded a totally different 'tone' video; all that is likely off.

Late Thursday evening, the President (finally) conceded a 'smooth transition' of power will take place for the new President. Imagine what could be avoided if he made that video a few days ago. Perhaps keeping any of his Cabinet on the job for these remaining days had some influence on his facing reality.

I do suspect (especially with Congress leaving town this morning after the late night Electoral role call), that you won't see the 25th Amendment invoked, nor any rushed 'new' Impeachment. The people aren't there to do it; and now the President seems (we'll see) to deflect the prospects by 'seeming' coherent.

Either way, the Nation navigates the next 12 days carefully; with few willing to take any order from Trump, unless perhaps it's validated by Pence as well. As we explored so much last night the overall Daily will try to be shorter; because a) markets now shuffle around a reality that change is nearby, not merely on the horizon; b) the Nation indeed survived (so far) insurrection; c) Congress behind the scenes realizes this was (knowingly or not) an effort to cripple one of the three co-equal branches of Government (hence an Executive attack by against the Legislative branch, even if nobody exactly calls it that, or if Trump doesn't realize what he actually did); as well as d) it's sort of like a CEO who under-performs; even if they did fine a couple years back, but falter and flail, a Board of Directors can simply say: 'you're fired'.

Many have viewed the Trump Presidency as indeed a sort of 'reality show', as may be part of why so many were impressed by directives we welcomed also (like lower taxes, regulatory reform, trade deals especially in North America or improved deals with China; getting NATO members to pay their fair shares or even moving toward Peace in the Middle East).

But as we believed all along, it went beyond that as the 'performance' (almost like 'The Apprentice' ratings) slipped; reality encroached from backstage, and then came 'Covid', which was too much for a 'transactional' President to deal with effectively (although a few proper moves were made early-on). Candidly I have pondered whether in his efforts (almost like Mussolini on the balcony in Rome) to assert dominance, upon returning from Walter Reed Hospital, there was further devolution in his ability to handle daily matters or form sentences; which was already a challenge for him. Remember, I remarked years ago that Trump was more articulate back in his TV 'daze' or my memories back in NY.

In any event, Joe Biden is 'no apprentice', and while his own votes and flaws I think are pretty well known; the pressures to 'hold the Center' are enhanced I think, but most politicians on either side of the aisle visibly and emotionally at least aware of the need to try to bring people together.

However I must say that the final throes of these disruptions may not be done; based on back-channel chatter I've heard about. Hence FBI moves to arrest a handful of organizers and perpetrators (the pipe bomb planters, the guy with a car full of Molotov cocktails, or the megaphone-wielding agitators) need to be rather swift, as there are those who still harbor delusions of wreaking havoc.

Executive summary:

• Markets have ignored what is 'perceived' as disturbing news; while reality tends to be that a Democrat-controlled Senate means lots of spending;
• That's not merely an 'explanation', as the movement in Oils, Banks and a slew of infrastructure / industrial stocks substantiates that prospect;
• Concurrently the action in 'super-caps' has alternated, but in high ranges, without moving meaningfully ahead; while 'other' stocks do the lifting;
• Omit most news (Senate, Trump etc.) and this is what we desired in early 2021; lift suppressed stocks; while tempering over-zealous super-caps;
• Technology will still dominate; just not the proportions as in the prior year;
• As a discounting mechanism the market 'eventually' will view a probable higher tax 'profile'; but in the short-run it's not an issue yet;
• Short-term the rotation we looked for continues with headwinds for techs, and tailwinds for others, including small-caps and specialized biotechs;
• Biotechs are 'very' news sensitive; witness the plunge of a $150 biotech late today when their trial for a muscular dystrophy drug disappointed (I was unfamiliar with the stock and that's good; but dropping in 5 minutes to the 70's is evidence of what happens when a one-trick stock gets kicked);
• My point here is simply why I prefer 'some' speculation in options for most such stocks (where available); so serious money is not put at risk in these volatile stocks; that said we're optimistic about the two that we do follow;
• As far as market concerns, of course there's the 10-year firming; but that too isn't a big issue; yet; but tapering has been hinted-at 'down-the-road';
• The Fed will open their eyes more; but remember they 'want' inflation and of course want to 'eventually' repay huge borrowings with depreciated or worth-less Greenbacks;
• However the system may have to be restructured more than that, as the 'plan' is a bit simplistic and doesn't account for 'systemic event' risks;
• Speaking of events, yesterday's chaos in Washington not wreaking havoc with markets, supports these higher levels which has now reached S&P 3800; the higher-end of the 3700-3800 range we'd looked for;
• Of course S&P doesn't have to (and won't) stop on-a-dime just because it reached this area; but now we have the beginning of a new 'overshoot' with our goal reached; as technically it 'stretches' above a rising tops;
• I want to emphasize that, as when you probe above an uptrend it can for sure continue; but the antennas should go up a bit more for it evolving to a short-term peak; unless it calmly ebbs-and-flows as it has for months;
• Generally there would be a 'honeymoon' period for the new Presidency; so we'll see if that 'at least' helps delay any more meaningful shakeout to reach a time-frame I've suggested: late January / early February; again;
• Oh, the DOJ finished their case with Boeing and settled for $2.5 billion as well as deferred prosecution deal, related to the fraud they committed as relates to withholding (even from airlines) information on the 737 Max;
• DOJ says the misconduct was not 'pervasive' in management; and that's likely a way to get management to agree, but avoid personal penalties; I wrote about all this at-length (not believing their initial explanations) back at the time.. gosh two years ago.. and this settlement is largely expected;
• People remain frustrated, often struggling, fatigued by Covid, in a mood where (through no help from social media) and now seemingly at last do have 'closure' as regards 2020's Election; presuming they calm down;
• As noted before, market strength, buoyed by Oil, was strong after Senate shifting based on the Georgia vote; moving stocks to realize increased spending will become a focus, and that's still the overriding theme;
• Last night I hinted prosecution (from the Southern District of New York if not other agencies) might compel Trump to 'feign' Covid-after-effects; or impaired mental agility; or other 'plausible explanations' for increasingly bizarre behavior;
• And now you have the District Attorney of Washington DC saying they're contemplating inditing Donald Trump for inciting a riot; they weren't clear if the reference was to Sr. or Jr. (or both) since both did incite the crowd;
• Covid updates: every metric regarding still skyrocketing; overshadowing these other issues that of course we continue keeping an eye on;
• I have heard (but Sorrento has not updated), that in preclinical studies, both STI-1499 and STI-2020 demonstrated potent neutralizing activity against SARS-CoV-2 virus isolates, including the emerging Spike D614G variant virus; if affirmed by Sorrento that would be an important factor;
• Sorrento CEO Dr. Ji said their cocktail is designed to work against over 100 potential variants of the virus; no data on success yet provided; once STI-2020's approved a transformative process is very likely to be quicker on the next strand uptake; and that's one reason MaB's beat vaccines;
• SRNE action is 'stable', which was my call for this week; pending what ideally will be the FDA's decision on 'at least' the Covi-Stix test EUA; so of course the shares are poised to rally 'if' they get it; and languish if not; our bet obviously is that they will get it;
• As to antibody treatments remember that Regeneron & Lilly antibodies have only slight affinity to original virus; thus require high concentrations (the huge IV load Trump took is a way to look at that); so they may be first to fail with mutant variants; leaving a path for Sorrento and others;
• Since SRNE's antibody has a high affinity to original virus, it's likely some decrease in affinity against mutant virus would still leave significant room for being efficacious overall; and that's the currently pending version; by the way the shares are trading on light volume for SRNE; exhaustion (?);
• One advantage Sorrento's approach has if that they can design specific antibodies in a hurry; and likewise some say that Inovio could design a new DNA vaccine in a single day; hence where is the help to get it done;
• Importantly, immunity either wanes faster, or is not protective, against the Covid variant(s); hence 'recovered' patients may be walking time-bombs, thinking they're somehow safer than the rest of us to venture around;
• This means whether vaccine, booster, or antibody therapeutics, there will be need for 'treatments and vaccines' for years to come, and that means a huge market that no single or even couple firms will fully dominate; and that's separate from probable better results in next-generation solutions;
• Bottom line: how we coordinate and navigate Covid 'is' still key to the market ahead; especially as short-term political aspects ebb (still fluid);
• We'll see what happens with Trump's 'stability' as a significant number of White House personnel were rumored departing and now some have as Elaine Chao became the first Cabinet member to resign today).. for any who don't know, she's the wife of Senator Mitch McConnell; as Sec'y. of Transportation, she'll stick around until Monday to assist transition to the incoming Sec'y. Pete Buttigieg.

And yes, it is because 'most' Trump supporters are just conservatives and not radicals, that Capitol Police were unprepared as they thought (perhaps rightly) that most marchers would be peaceful ('most' were); hence they took 'selfies', at least in the early moments before they grasped what was really up. Even a majority of the marchers were clueless about what was going to happen; and it might not have happened if security was better. In a sense; the history of the Trump crowds being perhaps of mixed intellectual capacity; but peaceful, was the key to making them a 'Trojan Horse' to overwhelm the Capitol security.

In sum: whether the President stays for 12 more days or not hangs in the balance for now; although it doesn't seem to be a market factor. And with the evening news; clearly he's emerging from cocooning seemingly facing reality.

Throughout history when we need unity and calm, our leaders come forth met the moment, rather than agitated; but I'll give Trump a break on this assuming he is 'sick', such as compromised cognitive abilities (or impaired, if not critical thinking abilities lacking).

Bottom line: I reiterate citizens have a duty to check their burning outrage so largely based on political or media propaganda intended to agitate. I'm proud so many understand compassion and adjustment for this diverse society; at the same time what happened yesterday was outrageous in that it didn't have to occur, had (whoever) organized the insanity contained it; or the President not incited. Donald Jr. and Giuliani say their comments were inspirational and not intended to 'incite'. Sure. What did they think? Words matter, especially in a crowd generally not used to critical thinking.