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canada goose coats My PortfolioAll Portfolios+ Create PortfolioManage Email Manage Real Time Email AlertsStock IdeasLong IdeasIPO AnalysisQuick Picks and ListsFund LettersClosed End FundsStock Ideas by SectorStock Ideas Editors PicksShort IdeasETFsETF AnalysisETF ScreenerEditors PicksLet’s Talk ETFsETF Performance SectorsETF Performance CountriesETF Performance Market CapStocks are soaring because the numbers of COVID 19 confirmed cases and/or new hospitalized persons are heading down.This is good news, but is this a reason for the market to trade at 2700? We say, as loud as we possibly can, no!Since day 1 we said that the negative implications on the economy will be felt way after we stop counting the dead.Here are “just” about a dozen of other things we look at (there are more) that keep (and will keep) us very cautious about stocks, for a while longer.Photo credit: elliot_groove FlickrBeware: If too many balloons pop up, there’s going to be a hard landing!Up, Up, and Away The Dow Jones Industrial average (DIA) was up 7.73% yesterday (April 6th).That was the 19th largest daily gain in the history of the index, going back to 1896.Moreover, that was the 7th date that the past five weeks have contributed to the list of the DJIA 100 largest daily gains.As we write this, S 500 (SPY) futures are up another >3% which means that unless things change dramatically before the market opens today (April 7th), we will move over the 2700 level easily.The reason behind this sharp move up is that the curves are flattening and the numbers of the daily new confirmed/hospitalization cases are going down in many countries/areas.This is good news, and I apologize for being a party popper, but is this “news”? I mean, isn’t this exactly what all the lockdowns are supposed to do?I’m sorry, but there’s nothing new about this whatsoever. This was as expected as a certainty can be. True, perhaps it’s coming earlier than people thought after all, nobody knew how compliant people will be and/or how quickly these lockdowns turn efficient, but principally there wasn’t a doubt that these numbers will go down.What do you expect when people are staying at home, behind closed doors? That’s neither news, nor a surprise, and the fact that the market is cheering the obvious, in our view, quite narrow minded.The economy is still shut down, and although it’s now pretty obvious that it will re open, at least gradually, no later than May, here’s a series of five burning questions:1) Is a reduction in the numbers while almost everybody is under a lockdown justifying a market rally of 25%!?. canada goose coats
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