E Market Briefing For Wednesday, August 26

Parabolic thrusts, almost always evoke contradictory moods among investors, for any stock (or Index) involved, especially when it's on-top of historically lengthy runs.  

You have professional investors rationalizing upside extensions (which generally will require revenue to actually meet or beat rosy expectations), and bears consistently in an argumentative mode, as to 'why' a stock or Index 'can't go higher', though it does. 

We have not made that argument, and since calling the March low (to the day) have cautioned against aggressive shorting or fading of the S&P because of: both the Fed stance (TINA), and money managers who missed our low staying in catch-up mode (of course that's referred to as FOMO).  

That is where the market is now, whether it's Apple (AAPL), Tesla (TSLA) or the NDX (NDX) itself. It's not exactly the case for S&P, although the compression of total capitalization both lifts the Index, but concentrates 'control' of the Index into just a few issues, as you know.

Sectors are bifurcated and in a sense strong. And it will persist overall, shakeout or not if a coupe things happen, and there lies the rub: the current pandemic controlled life-changes, require a focus on homes and schools, and online communication. So stocks in these areas (housing and connectivity besides direct beneficiaries in tech and telecom of course) dominate the action, aside the wild oscillations of biotech as the Nation and the world crave definitive news that might shuffle the players within a presumed 'new normal' that inevitably follows.  

That could be more old normal life than they think, 'if' we get an effective therapeutic, such as a pill, with would dramatically relegate Covid to an entirely ratcheted-down level of concern). But so for that's all aspirational. But it is why investors can (as most probably should) avoid the insane gyrations of a number of pharma / biotech players, by just staying parked in reliably-dividend playing stocks, or outside of the direct area of action, which centers along the highly combative arena of scientific progress.  

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