What's causing the bounce back?
Well... this market is fun! Worst week since the crisis followed by the biggest single day price gain in history... Question I have here, is the bounce back driven by:
a) A waning of the fears over the Coronavirus?
b) A bounce back because the market was oversold last week?
c) Biden's win in South Carolina and backing by Klobuchar and Buttigieg?
d) Something else?
From what I am seeing, the options market is still pricing in a pullback, to somewhere around the 2900 level on the S&P, so will be interested to see how the week goes.
What does everyone think and what are we buying? Do we think E&P is oversold (XOP down ~50% since May) and maybe we could see a little bounce? How are Chinese markets holding up as well as they are given the horrific production numbers they just put out?