Another positive week for stocks with the S&P adding 2.27%, now up over 10% in the past two weeks. While we traded in very wide ranges, beginning with Monday's 4% gap up on vaccine news/election results, all in all it was a healthy week of action. The more sideways the market gets in this area, the healthier it is. Markets are gapping up about 1% Sunday night so I'm anticipating a Monday morning gap up to wait out.
It seems the market is playing tug of war between the positive catalyst of election results + Pfizer's vaccine and the negative catalyst of soaring corona cases + lockdowns. Hospitilizations are at record levels and we just hit another daily case record of 183,000+ new cases Friday. The positive is that death rates are way down, but we have to keep an eye on lockdowns and how the market reacts to them. We also have to keep an eye on Moderna's phase 3 vaccine results this week. If their vaccine has a better efficacy than Pfizer's 90%, could be another positive catalyst for the market.
We're seeing value stocks get the most love since the vaccine news was announced. Growth stocks for the most part had a tough week when looking at the broad strength we saw throughout the market. The lockdown stocks looked like they were ready to come back Thursday with more lockdowns announced throughout the country, they quickly faded any gains Friday, and it's looking bleak for those stocks. Going to keep a sharp focus on where money rotates this week.