Roadblocks to Recovery

The economic calendar is a normal one and is beginning to include data from after the start of the crisis. This week includes small business and consumer sentiment surveys, as well as April data for retail sales and industrial production. I will also be watching jobless claims, both new and continuing. As I have noted for weeks, none of this will matter. The stock rally on a day with a terrible jobs number makes clear the actual market focus. I expect market participants to be monitoring the economic reopening and asking,

What are the roadblocks to the rebound?

Last Week Recap

In my last installment of WTWA, I described the high-stakes gamble involved in the economic reopening. That was a good (but perhaps easy) guess about the topic of the week. Financial news made it the lead story throughout the week.

The Story in One Chart

I always start my personal review of the week by looking at a great chart. This week I am featuring Jill Mislinski’s version, an excellent combination of the most important information.

As has been the case for several weeks, there are frequent opening gaps. This has been accompanied by much more active trading in the overnight futures markets (WSJ).

The market gained 3.5% on the week. The trading range was 4.8%, in line with the last several weeks. You can monitor these along with historical comparisons in my weekly Indicator Snapshot (below).

Personal Note

I am finding myself with more good material on science, economics and the investment implications than I can use. I am trying to find a way of providing it outside of the regular WTWA series instead of leaving it on the cutting room floor. I am finding fewer investment ideas that I can really endorse, but some that are worth investigation.

I am still looking for some time off. I’ll try again next week.


The Visual Capitalist describes 11 Cognitive Biases That Influence Political Outcomes. Why should investors care? These principles are at the root of important current decisions about health, safety, the economy, and investments.