Bad News Thursday

US equity indexes closed on a positive note, sp +56pts (2.3%) at 2526. Nasdaq comp' +1.7%. Dow +2.2%. The Transports settled +1.3%.


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Summary

The latest weekly jobless claims data made for a classic 'Bad News Thursday', printing 6.648M vs 3.307M prior week (revised). Equity futures swung lower from SPX +40pts to -30pts, opening in chop mode.

The US President appeared...

That tweet helped give oil and the main equity market a very significant kick upward in mid morning. Whilst a supply cut is necessary - not least as global storage capacity is near 100%, it will do little to stall the looming bankruptcy of most of the US energy industry.

Yes, I would agree its possible the US Govt/taxpayer will also issue a bailout to this sector. Again though... extracting a resource - in this case WTIC and Nat' Gas, at a perpetual loss, is sheer madness, and is NOT. SUSTAINABLE.

... but hey, we're in the twilight zone, and in these times, loss making companies are still something that many think is 'fine'.

The afternoon saw considerable chop, leaning

Volatility remains extremely elevated, with the VIX settling -10.8% at 50.91. A major drop, but we're still talking about VIX in the FIFTIES!
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A fair number of you won't listen, but it merits hearing...



Denniger just calling the monsters... for what they ARE.

Its fascinating to see how most of those whom have long touted 'freedom and liberty' act like little sheep to the political hacks, who are using the Corona virus to quietly pushing through some very dark sided legislation. Disagree? Well, I'm guessing you were the one panic buying in early/mid March, as you've never seen anything coming further than your next Dominoes pizza delivery.

To the rest of you... hang in there, the collective can't stay 100% insane forever. At some point, semi-normalcy will return... if only for a few months until the second wave, from October onward.
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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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Ugly start to April and Q2

US equity indexes closed powerfully lower, sp -114pts (4.4%) at 2470. Nasdaq comp' -4.4%. Dow -4.4%. The Transports settled -4.9%.

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Summary

It was an ugly start to April and Q2, with US equities opening powerfully lower on renewed concerns of Corona. The market leaned broadly weak into the closing hour, with the SPX printing 2447, just 103pts shy of min' downside target of the upper end of red gap,

Volatility picked up, with the VIX settling +6.6% at 57.06.


Corona updates

First, the Denniger...




Second, from a few days ago, Dore, on a spiraling situation in Italy...



When the Government order you to stay home, taking away your source of income, and when you finally run out of food, what do you expect MILLIONS of people are going to do? The societal and economic implications should be clear, and they are ARE terrifying, as the lockdown is set to continue for weeks to come.


Finally, Rogan with Dr Hotez


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

Goodnight from London
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A fiercely bearish March

US equity indexes closed significantly lower, sp -42pts (1.6%) at 2584. Nasdaq comp' -0.9%. Dow -1.8%. The Transports settled -0.7%. Near term outlook offers cooling to at least the mid sp'2300s.

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Summary

US equities opened a little weak to 2592, but swung upward to break a fractional new cycle high of 2641. Meanwhile...

So... if that is eventually agreed, the Fed will no doubt be buying (if indirectly) another $2trn of bonds. If you think that is a valid solution to the current economic depression, I got a bridge that spans the Atlantic ocean I can sell you.

The afternoon saw renewed weakness, with the market ending the month/Q1 on a pretty weak note. Volatility was in cooling mode, with the VIX settling -6.2% to 53.54.


A fiercely bearish March

Despite a seven day swing from 2191 to 2641, it was unquestionably a fiercely bearish March, as February's bearish engulfing candle played out.

spx'm1b

For the month, the SPX saw a net decline of -369pts (12.5%) to 2584, having printed a low of 2191.

I would merely ask... what 'drama' will April/Q2 offer? 
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The sun sets on March/Q1

Full moon is April 7th

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

Goodnight from London
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If you value my work, subscribe to my intraday service. 
For details and the latest offers, see: Permabeardoomster.com