But today was a breath of fresh air. The rally was mostly because of Moderna's news about their vaccine. And it was great news!
So stocks went off to the races! Pretty much everything is up but the question is, will we fall back down? My text chat group (almost all bears) believe so. I disagree.
There is too much money on the sidelines and too much FOMO in the air. People want to get back to normal and normal includes putting money to work. Interest rates are pretty much non-existent so you're really left with boring bonds or the stock market. Seems like people are leaning toward the latter.
My one worry is that Moderna's 2nd or 3rd phase could bomb. If that happens, I'm selling everything and we're going back into short positions. But I want them to succeed not only because of my portfolio but we need some positive news already. Things need to get back to normal.
I still have my short on American Airlines but that is a long play. It expires on Jan 1st 2021 so we'll see what happens. I'm predicting bankruptcy, but who knows what kind of government stimulus they might get. What is everyone else doing?