Stock prices continued choppy, as they have since March.
Nervous investors continue selling on any news perceived as negative, while well-informed institutional investors continue to see evidence of a strong economic recovery as an opportunity to buy the same stocks at discounted prices. This see-saw battle causes choppy stock prices throughout the week with little net change by week’s end.
The pessimists were in control most of the week until Merck on Friday announced approval of a new pill that when given to those with COVID provides a better, quicker recovery than any other treatment so far – a potential game changer and another nail in the Dem/MSM virus hysteria coffin.
Our stocks again reflect this intra-week tug-of-war between sellers and buyers. Still managing some new weekly highs, but others have stalled momentarily or declined.
Interesting that Bed, Bath and Beyond (BBBY, a short in Level 2 and 3) declined significantly for a new weekly low after reporting “unexpectedly” lower Q2 sales, revenues and profits. Perhaps being so “woke” you discontinue stocking My Pillow products due to CEO Mike Lindell’s conservative politics and thus alienate a majority of your customers this outcome shouldn’t be so “unexpected”.
The sizeable profits we are used to earning depend on stocks changing price significantly over an enduring period – in either direction – and until one of these groups of investors finally agrees with the other for consensus, we will continue to see smaller gains from range-bound prices.