U.S. just hit 160K new covid cases and there's no sign of slowing down. In fact, it's exponential growth (more than 100%) in November alone. That alone should cause the rally to pause and retreat to support, but the economic data has been promising and DKNG's just raised their guidance with one caveat - "As long as there are no disruptions to sports due to Covid". That being said we've already seen a number of games rescheduled in the NFL and what would happen if the playoffs were to be canceled? Or the season is postponed... until when? Spring?
Things to consider in the weeks ahead...
1. Exponential Covid Case Growth and Overrun Hospitals nationwide.
2. Covid has already disrupted the NFL, College Football, etc.
3. Thanksgiving may be a super spreader event which dramatically accelerates us to 250K plus new cases daily
4. Black Friday shopping? That'll be worse than Thanksgiving
5. It's going to be a long winter and we're just getting started
If sports make it through November then it could be smooth sailing from here - maintaining the blue line support. However, if $H%T hits the fan look for support at the redline. At these levels, I'm bearish but it's close to a breakout so who knows.
Things to consider in the weeks ahead...
1. Exponential Covid Case Growth and Overrun Hospitals nationwide.
2. Covid has already disrupted the NFL, College Football, etc.
3. Thanksgiving may be a super spreader event which dramatically accelerates us to 250K plus new cases daily
4. Black Friday shopping? That'll be worse than Thanksgiving
5. It's going to be a long winter and we're just getting started
If sports make it through November then it could be smooth sailing from here - maintaining the blue line support. However, if $H%T hits the fan look for support at the redline. At these levels, I'm bearish but it's close to a breakout so who knows.