I sincerely hope that you’re enjoying your weekend, and that you safely made it past Friday the 13th yesterday.
While there’s no real evidence to suggest that you’re likely to have bad luck on a Friday that falls on the 13th day of the month, a large number of people believe that to be the case.
We often see similar kinds of irrational beliefs and behaviors in the market.
Take this week’s big move up for so many beleaguered stocks, and the move down for so many market darlings during the pandemic, after we got some positive preliminary news about a potential vaccine candidate.
Given the way these stocks moved, you’d think people believe the coronavirus problem was a thing of the past.
It’s going to be a long, long time before we can all safely get on a cruise ship again.
But based on the action we saw on Monday, with cruise line Carnival Corp. (CCL) skyrocketing up 39.29% by close, you’d think that it had been announced that Covid-19 had been eradicated.
In reality, the announcement that we did get was that American pharma giant Pfizer Inc. (PFE) and its German biotech partner BioNTech SE (BNTX) released some preliminary results from their Phase 3 trial for a Covid-19 vaccine, showing that the vaccine candidate prevented over 90% of Covid-19 infections.
As a result, the Dow shot up 6%, the Russell 2000 index of small-cap stocks up spiked 7.5% at one point, and the S&P 500 was up 4.5%.