Tuesday 17 March 2020

Tuesday chop

US equity indexes closed powerfully higher, sp +143pts (6.0%) at 2529. Nasdaq comp' +6.2%. Dow +5.2%. The Transports settled +6.3%.




US equities opened very significantly higher, but the gains were shaky from the start, with the SPX breaking a marginal lower low of 2367... just 21pts above the Dec'2018 low.

With equities seeing a secondary wave upward, Trump, Mnuchin et al, appeared in late morning...

It would appear American citizens can expect some 'free money' starting within the next week or two. I'm guessing it be around $1000. Mnuchin spoke as though payments would be monthly, and continue for 6-8 months.

The afternoon saw some considerable chop, leaning on the upward side. Volatility broke a new cycle high of 84.83, but then cooled, the VIX settling -8.2% at 75.91.

Your views...

For the record, yours truly would choose stocks, specifically Barrick Gold (GOLD).
Extra charts in AH (usually around 5pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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