Resilient Yet Exhausted Market Amid the Chaos

It is not hard to see that plenty of market players are keeping one eye, or more, glued to the news flow around the clock. After all, with various parts of major American cities literally burning in the face of some of the most widespread and violent signs of anarchy this country has seen in at least fifty years, the market sure seems like a cool customer. 

As we discussed in a blog post here and with Members yesterday, there are various theories as to the question of why the market is so resilient and, frankly, oblivious to what are typically glaring signs of economic devastation:

1. The market's "drug dealer," The Fed, is supplying it with plenty of the good stuff, and the market itself is nothing more than a drug fiend at this point with no social wherewithal or concern. 
2. The market is simply inflicting a psy-op, "pain trade" scenario where it will drift higher to simply frustrate the majority of players and pundits alike. Simply put, it is too obvious to go down in the face of this type of news.
3. The market is playing on borrowed time, featuring a delayed reaction, where it will completely collapse any day now, or at least give back a huge chunk of gains since March. 
4. The market is, unbelievably, pricing in a rebuilding of major American cities after the looting and riots, and the overblown CoronaVirus fears will abate this summer and beyond. 
5. The extreme risks from the economy have been transmitted from markets into society via the riots, looting, etc., thanks to The Fed (see also: theory number 1)

Again, those are just some theories. And if you have read this website over the years then you know we are not looking to argue or debate the market very often. Still, it is instructive to at least reflect on price action at various junctures. 

My take? I am in the theory #1 plus #5 camp, as noted yesterday--The market is getting high on its own supply until it starts yearnings for a new batch of drug, where by it will pressure The Fed to come through again for another injection of the "good stuff" in terms of easy, unique (QE, negative rates, buying stocks, etc.) monetary policy. 

As for the action in the here and now this morning, tech is sluggish even as small caps and some Dow names try to pick up the slack, again.

Overall, though, this is slow, drifting price action, completely at odds with the real economy and trying to discount the future. 

OLN is my ammunition play for firearms, a name I still think has legitimate upside but, given this type of market action, I am not looking to push my luck.