Renewed horror

US equity indexes closed powerfully lower, sp -106pts (3.4%) at 3023. Nasdaq comp' -3.1%. Dow -3.6%. The Transports settled -5.3%.

sp'daily5

VIX'daily3

Summary

US equities opened very significantly lower, with further Corona related headlines. With the US 10yr yield printing 0.89%, equities were increasingly pressured lower into the late afternoon.

Gundlach made an appearance on the CNBC lunchtime show...

Gundlach believes the Fed will cut by another -50bps to 0.50-0.75% at the FOMC of March 18th, and I could agree with that. Gundlach ended with "I applaud Jay Powell, and I do not believe he will go to negative interest rates".... of which I do NOT agree, as the Fed appear tragically content to follow Japan and Europe.

The afternoon saw further downside to sp'2999 with VIX 42s, with a little recovery spike into the close. Volatility picked up, with the VIX settling +23.8% at 39.62.


Meanwhile...

Map/data: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

South Korea, Italy, and Iran, remain key secondary outbreaks. It won't be long until France, Germany, the UK, and USA have similar numbers.

Finally, the war between two billionaires continues...

Link: https://twitter.com/realDonaldTrump/status/1235633381595066373

The year is 2020, and that is all I have got to say 'bout that.
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Goodnight from London
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Midweek bounce

US equity indexes closed powerfully higher, sp +126pts (4.2%) at 3130. Nasdaq comp' +3.8%. Dow +4.5%. The Transports settled +3.4%.

sp'daily5

VIX'daily3

Summary

US equities opened very significantly higher, and despite some shaky price action, clawed upward across the day.

Volatility was in cooling mode, the VIX settling -13.1% at 31.99. S/t outlook offers another powerful swing lower, but that appears far more viable early next week, after some Corona announcements... likely due after the Friday close.


Meanwhile...

South Korea, Italy, and Iran, remain key secondary breakouts. The rest of Europe and the USA/Canada are clearly set to follow.

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Goodnight from London
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Super Emergency Tuesday

US equity indexes closed powerfully lower, sp -86pts (2.8%) at 3003. Nasdaq comp' -3.0%. Dow -2.9%. The Transports settled -2.9%.

sp'daily5

VIX'daily3

Summary

First, lets start with the overnight Trump tweets (what else would Trump do at 1.34am EST?)

It wasn't long until the Fed announced an emergency rate cut of -50bps to a new target range of 1.00-1.25%. Equities initially spiked, with Trump responding...

The SPX maxed out at 3136, and then spiraling lower into the afternoon to 2976, as it became a 'sell the news' event.

As I noted last week, it was just a matter of time until the Fed effectively called 'Broken Arrow'.

No matter how bad the economic effects of the Corona virus, the fed can now say 'they did their part'. Yet lower rates won't help the US financials, and it sure won't stall the spread of Corona... never mind cure it.

Volatility picked up, with the VIX settling +10.2% at 36.82. Tomorrow will be day'10 of a collapse wave, and the equity bulls should remain extremely concerned until we're into next week.
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Momentary peace

Just another flying can of Corona... probably Boeing.

Full moon March 9th

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Extra charts in AH (usually around 5pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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