What is going on? I don’t understand the stock market anymore, not like I ever did, but this time this is just madness. All stock indices are almost back to where they were before the big sell off started, with the Nasdaq now making new highs. I think the thing that blows my mind the most is that stocks that have mentioned bankruptcy or at risk of being delisted ($LK) were up like 500%-600% this past week. AAL almost reached its pre Coronavirus lows (24) on Friday at the open.
I get it, seems like the worst is over in terms of Coronavirus (I really fucking hope so) and a lot of people have been getting paid more to not go to work than they did at work. At some point although that is going to end, not to mention people who have been spending this new money are going to have a rude awakening when doing taxes next year.
I’m now reading on news websites besides CNBC about how amazing the stock market has done and my friends who never invest, started now and every day are talking about amazing the stock market is. I guess what I’m trying to get at from this is, at what point will stocks look past all this stimulus and start pricing in post Coronavirus, post PPP, post amazing unemployment stimulus. In the long run yes most companies will regain their level of business that they had before this, even if it takes 5-10 years. But just seems like at this point absolutely nothing can take this market down and I’m amazed at how it can continuously look past horrible news and say its priced in while the market is almost at all time highs.
And yes I had puts last week and got destroyed