At the beginning of the year, uncertainty was high, and the big question was how far the market could go, already at the time very stretched and hitting historic highs. The COVID-19 crisis, despite creating countless doubts at the economic level, clarified the sentiment of a large part of Wall Street players who in March said without any great doubts that the US indices would hardly see new historical highs in 2020. But a few weeks then the rhetoric changed radically, the noise ceased to be in the economic consequences to focus on recovery, financial stimuli and combating the crisis in terms of health, namely treatment for the infected and vaccine against the virus.
In the past two weeks with Wall Street playing historic highs on Nasdaq, or very close to that on the S&P500 and Dow Jones, the feeling despite being bullish has been of shorter steps, or from corner to corner waiting for some extra visibility on the several themes that I have mentioned. The fact that it is a vacation period and we are in the middle of the earning season makes it even more difficult to evaluate the medium-term, so for now the short and very short term deals are the most desirable by investors, who remain very active in the market, as volumes far above the averages of recent years indicate.
