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%.

sp'daily5

VIX'daily3

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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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.

sp'daily5

VIX'daily3

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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Peter Schiff has the high ground

US equity indexes closed very significantly higher, sp +85pts (3.3%) at 2626. Nasdaq comp' +3.6%. Dow +3.2%. The Transports settled +1.2%. Near term outlook offers a turnaround Tuesday, into the March/Q1 settlement.

sp'daily5

VIX'daily3

Summary

US equities opened choppy, leaning on the upward side, but the gains were shaky, with a few indexes briefly turning red, and then resuming upward.

Social distancing between the Faber and Cramer

The afternoon saw considerable chop, but leaning upward to print sp'2631 in the closing hour. Volatility remains extremely high, with the VIX settling -12.9% at 57.08.

As for the Corona, much of everything I expected is coming to pass. Here in the UK, the lockdown is now expected to continue into May... if not June. There is even talk of 'social distancing measures' to extend into 2021.

For now, I'll merely suggest you listen to the following from Denniger. Its the best 13mins and 45 seconds of audio so far this year.



Whilst you might not like what he has to say, he is merely stating the facts.
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Peter Schiff has the high ground

Of the many Star Wars memes, 'Peter Schiff has the high ground' came to mind.



I guess you could also say... he was the chosen one.

ps. Its safe to assume Youtube (via Comcast or Sony) will pull this video sooner, rather than later. Download a copy!
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Sunset in the city of Corona

Full moon will be April 7th

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