The Gilmo Report

October 11, 2020

October 10, 2020 10:52 pm ET

The market is challenging the crowd’s assumption that no stimulus deal will result in a negative response from stocks. The Senate Majority Leader has made it clear that the Senate will not go for a big stimulus bill, regardless of whether it comes from the President or the House. To me it appears that a stimulus bill is DOA, but the market doesn’t seem to be worried about this.

Does it know something, and if so, exactly what? I’ve written previously that in this market we can expect to have our assumptions challenged in an Alice in Wonderland environment, and it appears that this is what we’re seeing right here, right now. However, if one already knows that the Mad Hatter is indeed mad, one simply focuses on the set-ups in individual stocks because that offers the only sane vista from which one can make sense of the madness.

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