Markets React to Variant and Powell
We aren’t certain exactly which one is more important, the fact that many are scared that Austria’s lockdown tactics will spread or the new “variants” will become out of control or the fact that Powell will be the head of the FED still. Whatever the case may be we can always point to risk off events as panicky as a those that have to sell will sell and those that don’t may still say just to lock in some profit. Whatever the scenarios may be they are endless, so we would just rather follow the pricing. Let’s look at the SP500 which is down over a 100 points and trading once again close to the 50eMA which we know will have something to say about all this selling pressure:
Next up, a much needed Crude breather as Crude as its down over 13% today nearing 2021 support zones:
Next up the DAX which as you can see this will be the 4th test of this 15000 area:
Finally the Nasdaq which despite being down over 300 points today is still positive for the month, so let’s keep that in perspective:
So just as a backdrop to all of todays mess Zhedge put this out last night about the new Covid strain:
The Nu variant was identified 5 days ago initially in Botswana with subsequent confirmation and sequencing in South Africa with about 100 confirmed cases. Cases have been detected in Israel and Hong Kong and as of this morning, in Belgium. (Zerohedge)
We aren’t sure where this will lead, but winter is coming and we can’t help but think the risk will continue and that any talk of vaccines or otherwise will be the norm. We can’t expect science to combat this head on and efficacy to be fully expected. Rather we would rather take the longer term view and know that human immune systems have to adapt and have adapted for thousands of years, its just that today, everything is so connected that isolation is almost impossible without collapsing society and the system that we find ourselves in today. This is a problem that will not go away nor is it a problem that printing trillions of dollars can solve, because money doesn’t buy health, nor does it guarantee the safety of anything…stick quick and nimble friends, more to come over the weekend.
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