“I suppose I’ll have to add the force of gravity to my list of enemies” – Lemony Snicket.
The county has a “Gone Fishing” sign on the door. It’s closed I guess. Today MLB, MarchMadness (NCAA), NHL and Disney shut their doors. Disney just also just canceled the release of Mulan and The New Mutants. Broadway is also closed. I’ll have to wait and see Girl From the North Country I guess.
I’m sure NY strip clubs are still open, no germs there.
Here’s what the Fed will be doing the next couple of weeks and we also have the Fed meeting next week where they are expected to cut rates by 100 basis points. These actions haven’t been working as the Fed is looked at as a clown show now.
I sent out an afternoon note “Repos to the rescue”. The takeaway from this action is that repo lines from the fed alleviate margin calls on large funds that are forced to sell their equities to meet them.
I told you a few weeks ago that these repo deals were finding their way into hedge fund coffers. Let’s see if this works this time. Maybe it will alleviate some pressure.
The World Health Organization has announced that dogs cannot contract Covid-19. Dogs previously held in quarantine can now be released.
So WHO let the dogs out.
It was 3 on Tuesday, 2 yesterday and 1 today. You have all been following this bouncing ball.
I know JNUG and NUGT were bad losses, but did you see them today? NUGT was -36.0% and JNUG was -61.0%. Just unforgiving.
Spain just banned short selling, I think Italy may have, I have to check. The U.S. did this back in 08-09….it didn’t help.
Just a crazy thought but if the markets tanks tomorrow I think the Fed could cut to zero tomorrow. And there you have it.
Regarding VIX. Only 2 X in recorded history was VIX higher than today. Both occurred in 2008. Then the market rallied 20%. A 20% rally would take SPY back to $300.
Maybe just wishful thinking.
Fridays have been abysmal and tomorrow is Friday the 13th. I’ll be trading tomorrow with a kevlar vest, a garlic necklace, and a propellor hat.
We have full “social distancing” on steroids.
I hope you guys are hanging in there. See you pre-open.