There have been talks of a "V-shaped recovery" in the major indices once the COVID-19 pandemic blows off. Well, that's not going to happen, because arguments such as this demonstrate a fundamental lack of understanding of how bear markets work. The COVID-19 was merely a catalyst which deflated our debt bubble. In January, everyone was doing fine, we were winning big time. Fast forward two months later, entertainment industry has basically closed down, air-lines and travel agents are on the brink of bankruptcy, over 2 million have been laid off already, the largest in U.S. history. It's a lot easier to destroy something rather than to build it from scratch. Bear rallies like this one can last for a couple of months before dipping to the core of the Earth. Caveat emptor.
Uncle Trump talked today with Paul Tudor Jones, Stephen Schwarzman, Dan Loeb, Vista equities Robert Smith, and Jeffrey Schecher from ICE. What do you think were they talking about? Certainly not about a "U shaped recovery" or "L shaped recession".... Don´t be naive and collect option premiums - you will be "massacred".... BTW: Talking about collecting option premiums - where is Vic Niederhoffer when you need him?
Actually, "at this rate", we'd need 5 more trading days of the same upward movement magnitude to get back to ATH. And you have my personal guarantee that it will NOT happen. Thursday's unemployment claim numbers are going to put some sting into the dead-cat bounce.