A Monumental Stock Buying Opportunity in the making
We are briefly going to cover several topics simultaneously. Over the last 24 months, we started to speak more often about the concept of weaponised news, and we stated that the media would continue to push the envelope to the limit. The way the coronavirus story is being reported is a clear indication that this trend of weaponising news is gathering momentum at an explosive rate. Roughly eight corporations in America control 90% of the media; so much power in the hands of so few. These corporations are the gatekeepers so they can direct the masses to look at any issue from the angle they deem is the most fitting. It is easy to make a good situation look bad if you can alter the angle of observation, and that is what today’s media is best adapted for.
They are not in the news business anymore; they are in the thought manipulation business. Journalism has been replaced with gossip and opinions; these jackals can easily control the narrative. The antidote is simple; stop paying attention to the news, for its no longer news, opinions are being portrayed as facts. One would be better of asking a member of Ward 12 for the latest update, as opposed to listening to most of today’s journalists.
When the Masses Panic jump in and buy
Secondly, we suspect, this coronavirus event is being used to create a monumental stock buying opportunity for the wealthy. Polarise the crowd, and you can do anything you want, for their focus will be directed on the wrong event, and they won’t pay attention to what’s taking place right in front of their eyes. So how will this unfold? The Federal Reserve is going to lower rates and provide even more hot money for this market. The wealthy, unlike the average joe, can borrow millions for next to nothing and throw this money into the market. We also expect banks to get back into the trading business.
This massive sell-off will eventually lead to an even stronger melt-up, as money from the sidelines will pour into the markets; we discussed this issue in the past, but we will cover it again in future updates. Panic is setting as the crowd is throwing the baby out with the bathwater as even safe-haven assets like Gold took a beating in the recent sell-off. The masses are as uncertain as ever, and no bull market has ever ended in this phase; it ends when the masses are jumping up with joy.
Progress is being made towards a vaccine
Lastly, a vaccine or vaccines could come out relatively soon and the companies that market these vaccines will rake in billions in profit as everyone and his grandmother race to get vaccinated even though so far the fatality rate is rather low.
Speaking of a vaccine, Israeli scientists claim that they are only a few weeks away from producing one
For the past four years, a team of MIGAL scientists has been developing a vaccine against infectious bronchitis virus (IBV), which causes a bronchial disease affecting poultry. The effectiveness of the vaccine has been proven in preclinical trials carried out at the Veterinary Institute.
MIGAL is located in the Galilee.
“Our basic concept was to develop the technology and not specifically a vaccine for this kind or that kind of virus,” said Dr. Chen Katz, MIGAL’s biotechnology group leader. “The scientific framework for the vaccine is based on a new protein expression vector, which forms and secretes a chimeric soluble protein that delivers the viral antigen into mucosal tissues by self-activated endocytosis, causing the body to form antibodies against the virus.”
Endocytosis is a cellular process in which substances are brought into a cell by surrounding the material with cell membrane, forming a vesicle containing the ingested material.
In preclinical trials, the team demonstrated that the oral vaccination induces high levels of specific anti-IBV antibodies, Katz said.
“Let’s call it pure luck,” he said. “We decided to choose coronavirus as a model for our system just as a proof of concept for our technology.”
But after scientists sequenced the DNA of the novel coronavirus causing the current worldwide outbreak, the MIGAL researchers examined it and found that the poultry coronavirus has high genetic similarity to the human one, and that it uses the same infection mechanism, which increases the likelihood of achieving an effective human vaccine in a very short period of time, Katz said.
“All we need to do is adjust the system to the new sequence,” he said. “We are in the middle of this process, and hopefully in a few weeks we will have the vaccine in our hands. Yes, in a few weeks, if it all works, we would have a vaccine to prevent coronavirus.” http://bit.ly/2TaCQJZ
According to Worldometers
- Every year an estimated 290,000 to 650,000 people die in the world due to complications from seasonal influenza (flu) viruses.
- This figure corresponds to 795 to 1,781 deaths per day due to the seasonal flu.
Sources and info:
- Seasonal flu death estimate increases worldwide – CDC
- Up to 650 000 people die of respiratory diseases linked to seasonal flu each year – World Health Organization (WHO) http://bit.ly/32wVaQA
Why the hysteria when more people die each year from smoking-related deaths? What gives? Weaponised news, that’s what gives.
What gives is that the big players are using this as another chance to load up good stocks and the main reason this pandemic was created was to allow the Fed to flood the markets with huge amounts of money.
The markets rally on bad news and explode on any news that offers a small ray of hope. We are definitely in a market that has no real order (the market of “disorder” is the new label for this bull market). However, while on the surface, this might appear discerning it’s actually a good long term development for it will keep everyone guessing as to where this market is heading.
Given the current reaction from the Crowd, the coronavirus pandemic is going to be forgotten overnight, but the damage for those that gave into fear will last for years to come. Some will never recover, but that is a story for another day. The Dow appears to be headed towards 28K; as there is only 1K separating it from this target as of the current price. Now is an excellent time to sit back and dwell with how you felt back in March when the markets were crashing and when we repeatedly stated that this was nothing but a manufactured crisis and the markets would recover. We are now only 3K away from Dow 30K. This was the smallest bear market in history, and it was killed before it could even gather traction.
No market can trend in a straight line so on a point basis, the longer the Dow takes to pull back the stronger the correction. Initial data is suggesting that the days of minor corrections are over. We could be in for a new era in term market moves; sharp down days followed by even sharper reversals. Hence, the overall theme should be to view every sharp pullback through a bullish lens.
Let’s see if yesterday’s sell-off will mark the beginning of the next consolidation phase or whether the Fed will step in to circumvent it. As the trend is up, the general strategy should be to view all sharp pullbacks as bonus paychecks.
Other Articles of Interest
Insider Buying And The Coronavirus Pandemic (April 24)
Stock Trends & The Corona Virus Factor (March 14)
Trading The Markets & Investor Sentiment (March 3)