Will hopes of a return to normal evaporate any time soon ? If so, the bull trap will have closed – maybe a couple of days ago. Next on the agenda would then be fear and capitulation, and it is possible that equity markets still have a long way to fall.
Portfolio activity has been subdued. However I did give Gilead a good look through before buying a holding. Their strengths are in anti – virals and I did not see any lifestyle drugs in their portfolio – so a serious drug research company much like Glaxo and Astra in earlier days. Their drug that helps some coronavirus victims to recover quicker was originally developed for ebola.
I also looked at Marks and Spencer – but decided not to buy just now because the food business needs to prop up the clothing lines and gas station shops. Maybe clothing will begin to do better – after the administrators and receivers of other clothing retailers that have gone bust have disposed of stock.
I have also taken out a few small positions on the LCG platform this year. You do usually need to be quick to take profits on shares – ran a very small position in M&S while it rose 9p – now short of the S&P 500 which you can do in 10p (12.5cent) multiples per point – so if you are unsure of potential tops and bottoms and looking at Fibonacci levels you can get your exposure in bits ( e.g. 10 x 10p = £1 ). Helps to alleviate the boredom but care is needed.