Chasing the Gap? On the morning of Monday, 05/04/20, we wrote: “The worse than estimated GDP contraction, the 30+ million total job losses, and mainly, Warren Buffet sitting tight on his hand…seem to be finally catching up with the markets this week? A daily close below 2780 today will confirm that”. After getting supported at...
If Your Stomach Churns, Avoid Roller Coasters! The wild market gyrations continue in the overnight futures markets with index futures hitting “limit down” again! The SPY ETF is indicating an opening losses of 200+ points! As we have been iterating over the last few days, unless you are required to trade (professional trader? obsessive compulsive...
Extreme Levels of Noise and Sharp Spikes – Hazardous to Trade! “Limit down” and “Limit up” have become almost daily occurrence these days. The sharp and violent spikes in either directions make it hazardous to trade or invest. Unless you are required to trade (professional trader? obsessive compulsive trader?), better to sit out the markets...
The Bear is Officially In! With the Dow officially entering the bear market yesterday, it’s no wonder the other indices joined it with the overnight futures down big…hitting the rare “limit down”. The 11 year bull market is now officially dead, and for most investors/traders this is a new territory to navigate. Unless some unexpected...
Be Careful with Bull Traps and Bear Traps! Yesterday’s headlines-driven (“fiscal stimulus to the rescue”) rally fizzled out in the overnight futures market. It may be another wild day, with wild spikes in both directions…trapping under capitalized traders into deep draw downs and stop losses. Unless you are a professional trader with well capitalized accounts,...
Can a Pandemic be Fought with Monetary Policy? The G-7 Central Banks have spoken that they didn’t think they can be on the front lines of fighting the Coronavirus pandemic, and that government leaders (politicians?) can not just wash off their hands! Central bankers are saving their ammunition for later use as a last resort...
Worsening Coronavirus vs. First-of-month Fund Flows Today being the first trading day of a new month, the systematic investment fund flows into the markets coupled with potential temptation on retail investors/traders to “bargain hunt” could lead to strong whipsaws in the markets. However, there is no structural indications of any bottom to this fall, yet....
