Corona Panic.

By Bennett Tindle January 30th, 2020

Stocks on Friday were met with a significant decline following the CoronaVirus outbreak and news, leaving many investors uncertain and running for the exits. A close analysis of the tape would reveal that the decline was a direct result of the news and investor fear, while many growth and momentum names were still holdingup relatively well. Fast forward into Monday the 27th and the gap lower in the market resulted in the weakness spreading into your more traditional ‘bull market’ stocks and sectors. As a team we still felt the overall uptrend remained in-tact, and had no interest in taking short exposure prior to the heart of earnings season (150 S&P 500 Companies report in the week of 1-27-2020), and felt the move lower was an over-reaction from the investing public. Our thesis has since proven to be true aswe see the S&P 500 climb back over 1.5%+ from the opening low on Monday the 27th. We remain bullish and have been capitalizing on any pullbacks by adding exposure in our portfolio. Moving forward we see two distinct possibilities from a technical standpoint, both outlined in my video update below.