Suddenly a spike in the future of the S&P500. The cause is quickly unravelled in the main organs of financial communication, to my amazement the reason for a noticeable improvement in feeling had been due to a somewhat obscure communication, because it was not done by traditional means, about the positive results of a Gilead Sciences medicine for the fight against COVID-19, which was naturally interpreted as a positive sign that the economy could restart without so many fears of a reappearance of the pandemic.
This occurred almost a week ago and at the time I found it quite unusual that the market would have reacted in this way, namely because news with this potential would have to be validated by the company and not be transmitted by a “specialist” who is in the project of creating a treatment. What is certain is that it not only changed sentiment but also sustained the increases of the last few days, given the possibility of removing some risk in the return of economic activity. Yesterday the reality arrived, it was a flop, which gave fuel to a significant correction in the Gilead Science titles, which came to lose more than 10%, but also in the general market with the S&P500 losing more than 30 points in very little time.
At the end of the day, this is an excellent example of how a trader should measure very well what he catches in the noise of the news, never go on the wave, just because many sail it, you have to know well what kind of waters they are, because they are generally business more ruinous, because they cause significant variations.
