Crushing the virus is sadly going to be harder than keeping the Bears at bay in an extended 'super-cap' market, as the S&P consolidates 'reasonably', while Covid-19 is not just a moving target, but the fiasco surrounding 'testing' has crippled the ability to do useful 'timely contact tracing'.  

Hence data-delays I talked about yesterday, also delay awareness of people running around shedding viral particles typically without knowledge they are carriers. That's a reason for six months I've warned that 'ignorance is bliss, until it isn't' as I don't grasp the insanity of not just the no-mask-wearing crowd, but regardless of false positives (an inexcusable failure more of the companies making the tests than Government; of course unless FDA approved those tests without proper evaluation) .. the crowd that attempts to deny the seriousness of this when hospitalizations are rising.

That's of course irrespective of the distorted basic test numbers, or lower positivity as we gradually see more mask-wearing; but the lag time has more getting sick now. It's also realistic that the 'wide-open' schooling idea probably works in some places; but there may be untested large numbers of untested kids that will become spreaders as the Fall arrives; just in time to bump-into the early stage of early influenza season. 

Without debating the politics (this increasingly is finally more bipartisan but it took the loss of many and suffering of others to get to this point); the stock market and overall economy (which have been separated as suspected due to both the Fed 'Put' and of course the stimulus and Unemployment sustenance); which will have struggles over the near-to-intermediate term, regardless of Congressional stimulus.  

That means we get to a point; maybe preliminary now but probably a preview so far of what can happen again. As you separate technology that's not overpriced, and of course those therapeutic biotechs beyond the major pharma players, that possibly thrive ... you return to a mixed bifurcated market where many small stocks are a bet on who catches the 'brass ring' of financial support, unless what they offer is unique, which is not the case for many 'just another' knock-off vaccine maker following what are considered 'tried-and-true' traditional vaccine design methods.  

Among those Moderna had the newer approach, but is now embroiled in a Patent Infringement litigation, which hit the shares; and as you know I didn't like the leaked data or quick insider sales so it was one we avoided. Pfizer we liked as a pharma a good while ago; and it's higher; but didn't suggest buying it just for the vaccine so if a conservative investor picked it up for the 4% yield too; o.k.; but like many, vaccines are not a big money maker for them. Others, should they prove out, could be vastly different in terms of market performance, because many are skeptical and not all will work out, hence the idea of 'sprinkling a handful', without too much concentration in one.

Of those Sorrento Therapeutics is definitely a volatile stock (they're all to a degree); but they have the largest number of candidates. When we first bought this in the 4 or so area, we had no idea if any of their 7 candidates for Covid would have promise as we were unimpressed by the hype initially presented by its CEO. You know the story these past weeks. But this week they got the go-ahead for one Phase 2 'Trial' and a deal for global exclusivity for a drug that's already been tested in China. And they're pending funding for an on-site Covid test, with near-immediate results, which would be great, if it happens to also be accurate. We don't know; but potential is there.  

And Monday there might be interest (or disappointment) when VP Pence visits Miami for a discussion about combating the virus at the University of Miami. That's why he is flying down. Both Moderna and Heat Biologics have or are developing key Trials at the Univ. of Miami lab, which is well-regarded when it comes to various Trials. The fact Miami happens to be the current epicenter of virus leaves no shortage of Covid candidates for either vaccines or especially therapeutic treatments. Those two by the way could have 'complementary' rather than competitive products; but pending what happens with funding or organic development of products; we just await knowing.  

In-sum: market consolidation digests previous excess without breaking dramatically, at least so far. It may be frustrating to those cheering for decline; but lots of internal adjustments have occurred. There will be shifts and probably a grander correction; but as I look at the technical picture overall, I still do not see any broad jammed S&P overbought condition of the type that causes collapse, rather than milder setbacks.  

Now if you apply that to some overwrought super-caps that alone created what I've termed an 'ascending wedge' (it's still alive); that's an issue. For them but not for the stocks that are actually doing well in this environment. Definitely there's a possible chasm between 'reality' and even economic survival now in some areas of society as well as greater risk if we don't get miraculous solutions soon. But you can also have a 'relief' rebound, if Congress comes together with acceptable further stopgap Bills and relief on the Unemployment front.  

At the moment the market impact is what we address; not the political wisdom, which is a discussion apart from salvaging the broad US population, from a greater disaster very near-term, regardless of long-term challenge that we all understand. Of course one can have a view on that, but investment decisions and of course trading moves, have to be based on what we see currently; not years hence.