Monday 2 March 2020

March begins with a bounce

US equity indexes mostly closed very powerfully higher, sp +136pts (4.6%) at 3090. Nasdaq comp' +4.5%. Dow +5.1%. The Transports settled +0.9%.




Sunday/overnight equity price action was wild, -60 > +80 > -40, but opening moderately higher. The early gains faded to minor declines, with Trump making an appearance...

I would keep in mind, the US President personally selected Powell as the CEO of Print Central. In any case, an emergency rate cut appears possible later this week, and if not, we'll certainly see one at the FOMC of March 18th. The mainstream are now expecting FOUR rate cuts this year, which will take interest rates back to a target range of 0.25-0.50%. Unbelievable.

The afternoon saw some cooling, but the closing hour saw another major push upward. Price action was a very much a 'bear market bounce', after seven days of severe declines.

Volatility was in cooling mode, with the VIX settling -16.7% to 33.42. Whilst Tuesday may well open higher, last Friday's low of sp'2855 should be taken out sooner, rather than later. Or maybe you think a rate cut will cure Corona?

Magnolias to bloom

Sunset ahead of the rains

Full moon is March 9th


Extra charts in AH (usually around 5pm EST) @

Goodnight from London
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