E Market Briefing For Thursday, Feb. 6

Bipolar behavior - combines economic uncertainty over the nearer-term, with an acceleration (sad, but expected for now) of the epidemic into the pandemic status experts have suggested forthcoming for days. So, what does the stock market do? Take the S&P and Nasdaq to new highs.  

In a sense this can be a variation on 'climbing a worry wall', but there also is a realm of the political involved, since you had Mayor Pete emerge as a seemingly-viable contender in the Democratic primary process, while a well-choreographed State of the (Dis)Union speech on President Trump's part, sort of invited (was his lack of handshake at the start a 'bait for her') Pelosi's shredding his speech, as ironically throughout the presentation she flipped-through it 'as if' it were the menu at 'Cheesecake Factory'.  

Needless to say, her mood would be better with actual cheesecake, while the President probably doesn't need the added cholesterol; although he'll be celebrating (and perhaps the market partially is at) 'acquittal' as he will call it, even though he's still Impeached, just not removed from Office.  

All of this is amazing, somewhat parabolic, and just as Tesla (TSLA) kicked-off a surge higher (eventually seeking S&P inclusion) as car sales are delayed due to the epidemic (again go-figure), it's subsequent retreat (we warned as it soared that the move was unsustainable, would peak and reverse in our view, and it did, while cautioning that it would) preceded a rebound and that is when technically, it becomes clearer whether a short-term top is at hand, and whether (just like the earlier thrust higher impacted the market psychology at least) now we get a simply flip-around for the S&P.  

 However breadth has been adequate, the political picture less worrisome (at least a bit), but most are behaving 'as if' WuFlu (the coronavirus as I'd dubbed it) is nothing more than a seasonal flu common cold. It's not, so is this sort of (forgive the reference) whistling past the graveyard? Actually it is not because of several factors.  

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