SPDN

Shares in business-intelligence firm MicroStrategy Inc. have nearly doubled in the past month as investors watch Bitcoin close in on $20,000 and gain widespread legitimacy.

It was a bumpy end to one of the best months on record for risk assets.

There are three negative inputs to the current market action.And one ginormous positive.From my seat, the positive gives the bulls an edge.

It seems there will be no stimulus anytime soon.Depending on the election, it may be months before a new one is agreed.This a risk that has not been priced into the market yet.

The Chicago Fed's National Activity Index is pointing towards more growth.South Korea has emerged from its recession.The weekly charts for the larger indexes show double-tops, which probably means the 4Q20 will be a tough trading environment.

We have a perfect storm on the horizon that is approaching fast.Election turmoil, another wave of the pandemic, and an economy absent needed stimulus are the three fronts of this storm.The market implications between now and year end are a correction at best and another bear-market decline at worst.