No limits in the twilight zone

US equity indexes mostly closed very significantly lower, sp  -67pts (2.9%) at 2236. Nasdaq comp' -0.3%. Dow -3.0%. The Transports settled -2.0%.

sp'daily5

VIX'daily3

Summary

US equity futures saw extreme swings in pre-market, as the Fed announced it would now be purchasing corp' bonds. We're just one step away from Print Central buying stocks.

Despite the news, equities took another swing lower into the open, with the SPX printing 2191 in late morning.

A few tweets, that relate to the Fed's corporate bond buying...

Those are just two examples that came to mind. The implications (not least ethical) of months, and eventual years, of the Fed buying corporate debt, are wide ranging.


The Cramer

In the days, weeks, and months ahead, whenever you hear the Cramer talking about 'the market' or 'capitalism', keep in mind, he only supports such concepts when it suits him.

Cramer, supportive of infinite QE

The Cramer has always gone crying to the Fed or the US Govt' whenever things turned against him and his 'big money' friends. We saw it in 2007/09, and he has been at it since the market broke m/t rising trend last month.

The Cramer is supportive of the Fed's HEIST against the American people. The Cramer IS a communist, who has long believed in one rule for the societal/political elite, and one rule for the working poor. The financial historians of the late 21st century and beyond, will not look kindly upon those who actively supported zero/neg' rates, and QE, the latter of which is an effective THEFT of real assets, using money created out of nothing. Cramer isn't the only one though...

CNBC wheeled on the Tepper for the lunchtime show, to also air his support for further bailouts and 'Whatever it takes' from the Fed.

The afternoon saw broad equity chop, leaning on the weaker side. Volatility notably failed to mirror the lower low in equities, with the VIX settling -6.7% at 61.59.
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Meanwhile...

Death, the mall, and Pizza

Today's junk mail consisted of a 'dignity funeral plan', an attempt to lure me to a shopping mall which is (probably) closed, and home delivery pizza. Am I meant to order the funeral plan after the Pizza, or after I get to the mall that is closed until summer?


No limits in the twilight zone

Today's action from the Fed is just another reminder that we're ever deeper within the twilight zone.



Arguably, rather than an actual bell at the NYSE, they should just play the above track, in respect to the Fed. You know its just a matter of when Print Central starts buying stocks... not if, right?
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Sunset in the city of Corona

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

Goodnight from London
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Sunday Spring Sunset

A little glimpse into the world of yours truly...

5.47pm GMT, UK clocks will change March 29th

A British Airways Boeing 747, (probably) carrying Corona tainted passengers to the USA

Spring Magnolias

Summer heat is coming!

That light post needs to go

... and once more... night shall fall.

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Yours... fading into the sunset.

Weekend update - US equity indexes

It was a severely bearish week for US equity indexes, with net weekly declines ranging from -17.3% (Dow), -15.8% (NYSE comp'), -15.0% (SPX), -13.9% (Transports), to -12.6% (Nasdaq comp').


Lets take our regular look at five of the main US indexes

sp'500

Nasdaq comp'

Dow

NYSE comp'

Trans

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Summary

All five US equity indexes saw very severe net weekly declines.

The Dow lead the way lower, with the Nasdaq comp' most resilient.

YTD price performance:

The Nasdaq comp' is most resilient so far this year, currently -23.3%. The SPX is -28.7%, with the Dow -32.8%. The NYSE comp' is -34.4%, with the Transports -37.3%.
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Departing the city of Corona

Looking ahead

There is a fair amount of econ-data due, and the weekly jobs data will merit attention. Consensus is for a net weekly gain in claims of around +787K, vs +281 prior week. However, some (such as Goldman) are expecting as high as 2.25/2.50M.

Clearly, the market will be focused and impacted on further Corona related news headlines, of which there will be literal.... thousands.

Earnings: NKE (Tues'), MU (Wed'), LULU, GME (Thurs'),

Econ-data: 

M - Chicago Fed' nat' act' index
T - PMI comp' flash, new home sales, Richmond fed manu'
W - Durable good orders, FHFA HPI, EIA Pet'
T - Weekly jobs, Q4 GDP (third print), intl' trade, wholesale invent', Fed' bal' (4.30pm)
F -  Pers' income/outlays, consumer sent'
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London - a city collapsing into economic depression

Final note

The bull market from 2009 has decisively concluded, and its something even the mainstream cheerleaders have started to publicly admit. February's monstrous bearish engulfing candle was indeed a warning that March wouldn't go so well.

spx' monthly1b

We have a break of l/t rising trend, as a number of other chartists have highlighted recently. The SPX has already seen a 38% fib' retrace of the gains from 2009. I will merely add that a multi-week bounce is due, but such a bounce is to be seen as such, as the US/global economy collapses into a recession (two quarters of GDP < 0.0%), if not a depression (two quarters of GDP < -10.0%).

The Fed will no doubt be pressured to do more (not least from the US President), which will mean increased printing - to buy corp' bonds, and eventually stocks. Rates are clearly going to be taken negative, if not by Powell, then his eventual successor... the Bullard.

As for Corona, well, you should know the numbers by now... and where we are headed. Ohh, and be careful out there... in the twilight zone!

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Have a good weekend
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*the next post on this page will likely appear 5pm EDT on Monday.