Yesterday (Thursday) was the first day I heard whispers of complaints/concerns of stock market action. To be more credible this was from people who normally don't discuss such things. Of course true bottoms usually come with cries of agony from such individuals but people are beginning to pay attention.
FED Chairman J Powel came out this afternoon to try to come markets...the afternoon dip had DOW briefly -1000 points again....sm position again worth shot on Sunday night action by the FED as a possibility and it seems others thought the same as now DOW -729. If not then surely the FED will cut in March 17-18 meeting...maybe both Sunday night and then. Either way by the 19th I expect interest rates a full 1/2% lower. How long such a move buoys the market is anyones guess. Headlines and fear will be the ultimate drivers. DOW -685 with less than 4 minutes to go...range still intact.
Very nice come back last 15 minutes...From Dow -1000 to -357...LOL
Key was the VIX when DOW was testing lows late in the day the VIX was holding above its lows.
I was looking for a youtube video from the movie Wall Street when Marv says "I do love it so" Couldn't find one.
Saturday sees Democratic primary in South Carolina
Weekend sees if much changes with current Cov19 trend
Sunday night sees if Central Banks step in...especially in a coordinated fashion
Next week sees if a bounce comes does it hold...remember that range !
BTW, I heard 2 dogs in Japan have tested positive for Cov19.
myownhedgefund wrote: We got the -.5 rate cut here in the US
Lets see how the market closes
Not surprising - the Fed at this point has to feel pretty frisky given the huge decline in treasury rates - the higher treasury prices may also have allowed them to unload the inventory of treasuries that they had accumulated in prior years.
FED buys and sells Treasuries according to their schedule...repo market has more leeway.
Rate cuts have up to a 6 month lag time effect on the economy anyway. So ?????
Another point is going too low on rates screws up the carry trade for the Hedge Funds. Not there yet of course with the US 10yr still just above 1%.
Only Noon here...still anyones guess on the close and still within the identified rage which I think is important. I currently believe most know this range and don't want to explore below it. I also currently don't know if we will explore there or rate cuts can help prevent what happens.
News flow and peoples reaction to it is still paramount.