by Lee Adler, Wall Street Examiner
Editor’s note: This was written as part of the market setup report Thursday morning 07 May 2020.
The more deaths, the more the market rallies. Yesterday’s US COVID 19 death toll was 2,528, the highest since April 21. The University of Washington model, which has been pretty accurate, now calls for 3,000 deaths a day in June as states reopen their economies.
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Source: https://www.worldometers.info/coronavirus/country/us/
Notice that the daily death toll has broken out above the 7 day moving average, and that moving average just upticked. BULLISH! BUY DEATH!
This must make Trump and GOP politicians happy because most of those dying are… drum roll please…Democrats! So let’s hurry up and get those big states with the biggest cities reopened. Can you say, “Atlanta,” Governor Kemp?
And just think when they open New York, Chicago, Philly, Detroit, and Milwaukee. Especially Philly, where 90% of the population is… say it with me now! DEMOCRATS, in a battleground state. Without Philly, Trump wins PA. So it’s not just death, it’s Democrat death in battleground states! Whoopie. The RNC must be drooling in anticipation.
It gives the concept of voter suppression a whole new edginess.
It’s just so inspiring to see stocks rally on this news, don’t you agree? It will be interesting to see if the S&P keeps pace with the death toll. At the moment, the S&P is in the lead, but not by much.
Sarcasm aside, job losses are terrible, especially if it means you can’t feed your kids. I know people who are in that situation. So yes, we need to get the economy reopened.
But jeez, couldn’t they have waited just a couple more weeks to get this thing tamped down just a little? Is Trump’s reelection and control of the Senate more important than the life of a kid’s grandma?
The Georgia experiment in aggressive reopening will be interesting. What will the economic gain cost in human life? Right now Georgia’s COVID19 confirmed case death rate is running 1000 per month. 5,765 COVID19 patients were hospitalized in Georgia on May 6. May they all survive and return to health.
Save the grannies!
Source: https://datausa.io/coronavirus#cases-adj
Meanwhile, there’s nothing new on the Fed QE front. Yesterday’s comments still apply. For in depth analysis, including what to expect and its impact on the markets check out Liquidity Trader. Read Lee Adler’s Liquidity Trader risk free for 90 days!
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