The Fed’s Alchemy is Turning Just Right Bad News into Good News

There must be some kind of way outta here,
Said the joker to the thief.
There’s too much confusion,
I can’t get no relief.

–Bob Dylan (though best performed by Jimi Hendrix)

While these famous words from the song “All Along the Watchtower” were recorded all the way back in 1967, they seem very fitting for the situation we find ourselves in today, over 53 years later.

But it’s not necessarily relief from the worst pandemic in over 100 years that traders and investors are necessarily looking for right now (though it would certainly be welcome). Instead, it is relief from another source that would continue to push the market higher.

From the market’s perspective, the “way outta here” is through the Federal Reserve.

Here’s what I mean

Brace Yourself for a Very Unusual Earnings Season

Yesterday, Florida reported a whopping 15,300 new coronavirus cases.

That’s more than many countries, and a record high for the state.

It’s also more new cases in a single day than New York ever reported during its catastrophic outbreak earlier this year.

Other states in the South, West, and Midwest are also reporting quickly spreading outbreaks of the virus.

The headlines about it practically write themselves, so Big Media are focusing heavily on this surge.