The Rollercoaster Ride Has Begun
Last week in this column, as you might recall, I noted that the coronavirus panic had already produced “the worst week in the markets since the financial crisis, including the worst two-day point drop in Dow Jones history.” And I also warned that “the economic effects of this event are going to be very real and very profound.”
Well, here we are all of one week later. And what a week it has been. Let’s review, shall we?
March 2 – Dow surge is the biggest-ever point gain
March 3 – Dow drops nearly 800 points after the Fed’s surprising news about the economy
March 4 – The Biden Bounce: Dow Futures Up 666 As Traders Forget About Panicking Fed
March 5 – Global Markets Follow U.S. Stocks Higher
Uh oh! I’ve got egg on my face, haven’t I? Here I was thinking a massive disruption of the global just-in-time supply chain was going to expose the Everything Is Awesome! phony baloney fiat economy for the Ponzi scheme that it so obviously is. But, as MarketWatch tells us, “[a]fter the worst week since 2008, the Dow is now on pace for its best week since 2011.” I guess Trump was right after all: Everything is under control and this is a great buying opportunity!
So, are you feeling optimistic about the global economy now? Yeah, neither am I. Here’s why . . .
Find out what the market mayhem of recent days really means in this week’s edition of The Corbett Report Subscriber newsletter, Then, stick around for recommended reading, viewing and listening.
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I don’t think the pyramid cap is quite ready to replace the current paradigm with the totally completed ‘shift’ they have completely ready for substitution at the time of their choosing. I write this noticing that a big globalist player has just caused the energy costs to the human economy, its caloric input, to be slashed to allow productivity to continue if not to grow. This is of course Russia herself and a domino effect she will have on OPEC. As energy and products made from oil have prices fall the economy will stumble forward and keep going. All too often we tend to think the controllers are content with the financial world when in fact they control “the economy of the world as a whole” -Quigley- and can muster much more than the monetary in defense of the ponzi scheme they are running. When the ‘cap’ wants to crash the current system there will have been much more preparatory propaganda disseminated over a longer period of time in the midst of an severe economic downturn or a take ’em by surprise effort under a very real fear program of instigated looming starvation (or stopping the ruse of some nuclear weapons use in immolating a few cities from going further (?) or some such) and not just some pandemic hoax to which they can only produce fake pandemicy.(my new word) Anyway while the ‘cap’ is having trouble in its financial sector (inflate or die) they still have control over the productive economy and can use it to help stabilize the financial….imho, or am I engaging in confirmation bias?
Blad,
I think you have a good point.
And regardless of who “controls” the scenario, I am always heartened by
Corbett’s 5 minute, positive, simple, profundity of a video Economics in One Image.
https://www.corbettreport.com/economics-in-one-image/
Here is a photo meme of “Economics in One Image”.
https://secure.meetupstatic.com/photos/event/4/1/0/f/highres_460396655.jpeg
And within “Economics in One Image” lies the link to something which I insist that people listen to or read: “I, Pencil”.
I, Pencil is extremely enlightening and in a beautiful, aesthetic, high wavelength way.
I recommend listening to the audio in order to capture the beautiful explanation of the miracle of the “invisible handâ€.
I, Pencil LINK – https://fee.org/resources/i-pencil-audio-pdf-and-html/
Agreed and glad I don’t have to try and explain that. Seems to me this is the preparatory causal phase for that more intensive extensive propaganda necessary that you mentioned… along with exterminating enough of the old timers in the next dozen years while doing that propagandizing of the younger set all the more.
It could get interesting when they try to force vaccinate those who know it would be a death sentence, making you MORE susceptible to the mutated version in next wave of contagion.
China seems to be the test bed to see what they need to modify for active measures in other nations.
Caveat, they may have seen that a larger number are growing wise to their schemes and figure it best to go for it now before its too late.
Karen Hudes, has a much better plan. A former World Bank lawyer and whistleblower.
https://www.youtube.com/watch?v=gt4VV9602FM
http://kahudes.net/
As someone who has been following the markets (and the bloodstains by my desk prove it), I gotta say that this James Corbett article of March 8, 2020 “The Rollercoaster Ride Has Begun” is one heck of a spot-on financial synopsis, complete with forecasts.
The links which Corbett provides are worth viewing. However, I know, I know…most folks find ‘finance’ stuff pretty dry.
I’ll take this Corbett QUOTE home:
“I know I said this last week, but it bears repeating:
An event like what we are witnessing has the potential to justify an utter transformation of the economy as we’ve known it.
And, in case the point hasn’t hit home yet, “the economy†isn’t just some vague term here; it refers to the very essence of how we live our lives.”
I want to make this comment:
I have never before recognized just how gigantic the derivative activity is within the marketplace. There are huge quantities of made-up, paper, financial instruments in a betting game gone wild.
Just the options trading market alone is beyond belief, never mind the bond market.
The pension funds and 401k’s and insurance companies and all sorts of other institutions can see the waterfall down river.
It is the average person on the street who is going to be most affected by all of this.
I’m not panicked about the situation now nor the future.
I’m pretty calm about the whole thing.
Anyone who is a Corbett Report Member probably feels the same way.
Volatility Index (VIX) – “The Fear Index”
In his article, James did an EXCELLENT job of highlighting and explaining the VIX… and in case you did not notice, the “MarketWatch” link is archived on the Wayback Machine.
A few EXCERPTS from that MarketWatch article:
Carney said that what’s striking is that the speed of moves has frustrated traders, and forced them to buy smaller lots of assets for fear that they couldn’t be filled.
“You go to buy a hundred of something and it might move away from you in seconds,†he said.
“Now, we are moving 1% in a few minutes and 2 and 3 percent every day.â€
“It’s such a different animal than where we were at a couple months ago.â€
Remember Corbett’s October article about QE4?
“Everything (g)Old is New Again: What QE4 Means For You”
Ever since The Fed’s September “Not QE” and their daily/weekly injections of billions, a person could watch the stock market continuously rise. It wasn’t by the stock’s virtue, it was by the Fed pouring feed into the trough.
One could watch the VIX go lower and lower, while stocks broke record highs again and again.
Sucker Bets & the VIX
The craps table has sucker bets where the house edge is around 11%.
Betting on a Hardway 10 (5 & 5 on the dice) wins 7 to 1. I never bet the Hardways. I once saw a guy lose $10,000 in 20 minutes as he was throwing money across the board and covering all these sucker bets.
But, as dumb as I can be sometimes, I did place a relatively small sucker bet on the VIX (actually on the more dynamic 2x TVIX).
I figured that with the bad news and China, the stock market would soon go south and the VIX up.
It seemed like common sense, right? Wrong.
After days and days and days of watching my shares decrease in value, I finally got out, taking a loss.
Even on February 19, TVIX was at $39 a share.
On March 6th, that share is worth $170 a share.
https://finance.yahoo.com/quote/TVIX?p=TVIX
Rollercoaster = VIX
So, today (Wed March 11th) the TVIX per share value mentioned above is $270 as stocks dove down after going up on Tuesday following their dive on Monday.
TVIX (per share value)
Feb 19th = $39
Mar 11th = $270
TVIX (per share value)
Monday March 16th about 10am eastern time – $478
…and all over the map
Wednesday March 18th, 2020
Stocks, Oil, Gold and Silver took steep dives today.
TVIX (per share value at the close)
$806
Silver – Options and Futures – JP Morgan and other Big Banks – controlling price action
While this video is dated June 2018, Ed Steer gives a presentation which is easy for a layperson to understand.
It demonstrates how Big Players can move the market.
JP Morgan & Silver: The Price Management Scheme Continues – Ed Steer
https://youtu.be/n_h-5H421MA
This is worth watching a few times. What I think many do not realize is that precious metals won’t skyrocket in value as much as paper currencies are going to flatline i.e. crash and become worthless.
Considering historical rations, silver could catch up to gold because as is not it’s quite undervalued, relatively speaking.
In the recommended viewing and recommend reading James gives us a fantastic encapsulating summation of ” why we Love lawyers.
Everyone deserves their interaction once in life… NOT.!
Goldman Sachs covers the Coronavirus outbreak – worth a read
https://www.goldmansachs.com/insights/pages/top-of-mind/coronavirus/report.pdf
“justify an utter transformation of the economy as we’ve known it.”
Good essay here, esp. for Arnie Fans – Get to the chopper !
https://www.pricevaluepartners.com/get-to-the-chopper/
I overheard somewhere that the “WHO Urges People To Go Cashless Because “Dirty Banknotes Can Spread The Virus— and immediately thought of the Corbett Report. As Icke aptly named the crises which beset us: “Tip-toe to totalitarianism”.
I know nothing about markets. Here’s a non-fear-based interpretation I enjoyed reading. This person did phone investigations to Health Dept. and clinics in Santa Clara county and came up with some interesting conclusions.”Why The Coronavirus Will Soon Vanish Overnight”
https://ttfuture.org/blogs/michael
That was the very first time a major news channel acknowledged that coronavirus wasn’t a very serious disease, because the majority of cases recovered completely in a couple of weeks. Just like the flu. And the cured should then be deducted from the statistics. No one else does that.
Virtually every other story in all media for the past three months anywhere in the world simply piles the cases up, week after week, continuing to add to a growing list, making no allowance for patients that are no longer sick. Which is 99.9% of them.
…
Dr Kary Mullis, who won the Nobel prize for inventing PCR to detect HIV, [9] explains its limitations—why the PCR is not especially diagnostic, for HIV or for anything else:
“Quantitative PCR is an oxymoron. PCR is intended to identify substances qualitatively, but by its very nature is unsuited for estimating numbers. Although there is a common misimpression that the viral-load tests actually count the number of viruses in the blood, these tests cannot detect free, infectious viruses at all; they can only detect proteins that are believed, in some cases wrongly, to be unique to HIV.
“The tests can detect genetic sequences of viruses, but not viruses themselves.†[9]
…
So what was this all about – what was the objective from the outset? The $8.3 billion pork barrel for local, state and federal employees to squabble over. With media’s increasing stranglehold and censorship of opposing information now in place, this particular Boutique Epidemic got a little carried away and had an excessive effect on the stock market, travel, and international trade.
Isn’t it possible that the collapse of stock mkts causes trillion$ of recently ‘created’ FED $ to vanish, thus enhancing the “value” of the remaining “dollars” (increasingly proportionately held by “99%” non-stockholders)?
Isn’t it possible that the forthcoming insolvency of the ‘supranational economy’ will bring opportunity for conversions from “corporate-psychopathy-management” to “worker-owned-management” for essential industries and services?
Ought “we” begin the planning and realization of these transitions so as to avoid interim collapses in essential services and industries?
Update from March 10, BEFORE todays additional 1,000+ point drop:
“…sell-off wiping out about $11 TRILLION in market capitalization since the February record high.” (emphasis added)
When 11 Trillion dollars vanishes, each remaining dollar has greater “value” in the “marketplace”.
We just need to avoid allowing the stockmkt to destroy essential services and industries.
https://finance.yahoo.com/news/goldman-sees-more-stock-market-142514279.html
rollercoaster? Still going down…
Today, March 12, 2020, the Federal Reserve announced that it will be ‘buying’ one and a half TRILLION $ in stocks over the next quarter. (that’s one-thousand-five-hundred individual BILLIONS of $)
Although not obvious, this is actually SOCIALISM (for the rich – again) in that the gov’t instituted “bank” (FED) is CREATING $ (out of nothing) to essentially OWN more and more “stocks” (businesses).
Unfortunately, the FED will allow the psychopathic-corporate-entities (who created this crash) to continue their “mis-management” rather than the actual solution which would be for the FED to make these businesses available to be MANAGED AND OWNED by the WORKERS who would operate them in ways that MEET HUMAN NEEDS.
As in 2008, wherein the FED could have ‘bailed out’ the home-buyers (HUMAN FAMILIES)($1.4trillion) would have resolved the sub-prime-crisis, securing millions of U.S. citizens IN their homes and averted the “need” for QE1-2-3 and the Repo-mkt manipulations amounting to $20+Trillion which was used by the rich to further enrich themselves, stock-buy-backs, ‘bonuses’ and artificially inflated HOUSING COSTS (real estate) while continuing to eliminate U.S. living-wage-jobs and lobbying to eliminate essential social programs.
Social Security is the stabilizing feature of the U.S. economy, keeping CASH FLOWing in every community, supporting businesses, small and large, maintaining the availability of products and services and keeping citizens HOUSED.
btw, Joe Biden’s ‘signature’ policy-attempt his entire career has been to eliminate Social Security.
For perspective on numbers:
1 Thousand seconds = 16 minutes and 40 seconds
1 Million seconds = 11 1/2 days
1 Billion seconds = 31 YEARS, 170 days
1 Trillion seconds = 31,709 YEARS, 289 days
Anyone care to refute or confirm my statements?
Alan Watts ~ It’s Only A Game
https://www.youtube.com/watch?v=3vv0363gLr8
Alan Watts ~ It’s Just A Show
https://www.youtube.com/watch?v=jldHW2xKBao
There is an upside to the lockdown occurring. Every airline is cancelling 100’s of flights thus not CONSUMING and burning of fuels, streets are empty less fuel consumed every area is becoming CARBON neutral and even NEGATIVE .. so where are all the activists praising the virus and economic reset for saving the planet from climate change.. I say all this tongue in cheek. But it would be an interesting exercise to see what the carbon savings this Crisis has and is actually achieving…
I ponder will China claim a carbon credit in the near future?
Anyway just another thing to ponder in our adult day care homes while we agree to self quarantine while the “World” is changed in plain sight.
“…so where are all the activists praising the virus and economic reset for saving the planet from climate change..”
Off-Guardian has been writing a most informative series documenting the bloated numbers and fear surrounding corona. Quoting their article from March 5th:
“After all, this is just a virus – and a comparatively minor one – if we’re happy to see our governments take draconian measures to halt this…what about more significant threats?
…asks Owen Jones in today’s Guardian. He is not alone.
Well, maybe one day soon we will Owen. Won’t that be nice.”
off-guardian.org/2020/03/05/coronavirus-the-only-thing-spreading-exponentially-is-fear/
p.s. I replaced Off-Guardian’s actual links with archived links so as not to give Owen and his ilk the satisfaction of any clicks.
Does anybody here think that China is really concerned about the true health and welfare of its people?
(Ha! The same could be asked about the U.S. government.)
Think about it…
China does this mandated, massive, oppressive quarantine campaign.
When one views the videos and reports, much of the quarantine campaign seems almost like a silly façade, because it really does not do much to prevent a spread or to ensure that folks stay healthy.
For example: Armies of foggers spraying often toxic disinfectants, grouping hundreds of sick people together for extended periods of time, stressing people by limiting food/activity and forced manhandling of the populace.
I contend that the quarantine was not because China was worried about people getting sick.
China has set a precedent.
No nation has ever carried out a mandated ‘health action’ of this magnitude.
Why?
(And I don’t know why.)
WIN $100 !! (See far below for details of the contest.)
For context…China’s Power Structure
Watch this 2014 “China Uncensored” video which gives some insight into how the top power structure in China can work.
By the 7 minute mark, the video goes to 2x and then 3x speed.
I did not fact check the details of the video. Just get the flavor.
You will understand the title of the video after you watch it.
“What is Falun Gong and Why is it Persecuted?”
(32 minutes)
https://youtu.be/ayH0oyV5Xwo
~~~ ~~~ ~~~ ~~~
“Win $100” contest rules. – If you can name every person mentioned in the video and what role they had; by memory only and with no notes or pauses in the video, you will win $100.
March 6, 2020
“Shen Yun Performing Arts carrying the COVID-19” rumor & Falun Gong
(90 seconds)
https://youtu.be/fg7FwHteB0I?t=3m47s
The “Shen Yun” story caught my attention.
For several years now, occasionally I would see glossy high priced mailings promoting the Shen Yun dance show. I would also see large ads placed online or ad videos, ads in papers, and even posters at businesses.
I was amazed at how much money was spent on their promotion.
I am a bit puzzled by it.
I guess they get a good turn-out.
Anyway, this recent video prompted me to watch the 2014 “Win $100” video above.
It is still late Sunday night in the U.S.
March 9th, Monday morning U.S. Wall Street markets ought to get pretty wild, especially with the oil price situation and Saudi Arabia.
Oil GRAPH – https://tradingeconomics.com/commodity/crude-oil
The U.S. is bound to see a huge number of oil companies bite the dust.
A lot of grown burly men will be crying like babies.
I feel for the hard hats and their families… …and it will carry over to all the restaurants and other businesses which depend upon the industry.
What an appropriate title Corbett had for his article.
The Rollercoaster Ride Has Begun
Homey you got that right. The Indian Nations have moved to gambling and now revenues are on par with mineral resources. The state is contemplating going to Vegas style industrial gambling. That should quicken the final crash of the economy at all levels. The small hometown banks dread such as this. Only a handful will enjoy the carnage… Sad that almost everyone I have talked to believe big guvment will fix it. Sad.
A real Trail of Tears will permeate Oklahoma which already has been suffering an oil/gas slowdown.
Chesapeake Energy Corp. may soon take its final bow.
The SCOOP/STACK might as well be an old vacant lot on the wrong side of town.
I think that the smaller guys will go down first.
I know the casinos are sweating this coronavirus thing.
They certainly don’t want patrons walking in wearing a surgical mask.
The casinos are gonna have to hope that out-of-state folks come to Oklahoma bringing in some money.
I like Chocktaw down in Durant. A fair number of employees are from the north Dallas suburbs. Nice, down-home folks working there.
But I am staying away for a good while. I don’t have dough to roll the dice with.
I guess you have The River Spirit, Osage and Hard Rock up your way.
One thing I noticed about Oklahoma. The cost of housing isn’t too bad.
Here is an ETF stock which is 3x betting that the S&P oil and gas exploration companies will go down in price.
DRIP
Today, the price of one share is around $482 or so.
At the first of the year, one share was about $50.
https://finance.yahoo.com/quote/DRIP?p=DRIP
More Oil Market reports from Mar 9th Monday’s “Trading Economics”.
Copy n Paste
Crude oil futures fell as much as 30 percent after Saudi Arabia announced the biggest cut in oil prices for more than 30 years in response to the collapse of its OPEC+ alliance with Russia. At one point in morning trading, the Dow Jones was down 2000 points and the S&P 500 declined more than 7% triggering a ‘circuit breaker’.
…Wall Street plunged on Monday and halted for 15 minutes after the S&P 500 dropped 7%. Stocks will resume trading at 9:49 AM NY time.
WTI crude prices crashed on Monday, suffering their biggest one-day drop since the 1991 Gulf War after Saudi Arabia started a price war by slashing pricing for its crude while ramping up production. Riyadh’s move came after Moscow and OPEC failed to reach an agreement to reduce production on Friday, as the outbreak of the coronavirus in January dampened the demand outlook for 2020. The International Energy Agency has already sharply cut their forecasts for global oil demand growth this year, with global crude consumption now set to contract this year for the first time in over a decade. WTI crude dropped as much as 18% to $33.92 a barrel around midday NY time.
The DXY is now 95 (down about 1%). Not long ago the DXY was 99.
Oil-Exposed Currencies Tank
The currencies of oil-exposed countries came under pressure on Monday after Saudi Arabia started a price war by slashing pricing for its crude by the most in more than 30 years and sending oil prices tumbling the most since 1991. The Mexican peso declined as much as 5% against the dollar; the Canadian dollar fell more than 1% to a 14-month low; the Norwegian krone plunged 3% to hit a record low and the Russian ruble slid by nearly 8% to its lowest in nearly four years.
Bloody Monday for Markets – Oil and oil industry debt
March 9, 2020
“Boom Bust” gives a nice layman overview of markets on Monday.
https://youtu.be/-EY8O1tRMZg
Corbett is spot on… ROLLERCOASTER RIDE !!
So Monday the markets dove down. Tuesday they swung up.
“Boom Bust” – Tuesday March 10th
Markets Rebound Following Oil Collapse
https://youtu.be/8MDrLCz9R_I
And on Wednesday markets dove way down again after going up on Tuesday!
Rollercoaster Ride.
Thursday 12th and Friday 13th and week’s recap.
Thursday stocks down. (see further down on this thread)
Friday up.
Huge swings.
Volatility has been wild this week.
“Boom Bust” weekly recap
Friday March, 13
Ben Swann gives an overview of how The Fed is throwing well over a trillion dollars at the market.
U.S. Declares National Emergency
https://youtu.be/Cu_-bDJJgbg
Two options. This is a drill for thinggs to come or this is the beginning, first stage.
They cannot crash this freight train all at once because the mayhem will be uncontrolable and there is a high risk that some of the establisment could find themselves at wrong end of the rope.
Remember 2030 is the deadline.
“renowned economist, Bill Hicks”
If I have heard Bill been described before, that is a new one!
“Today a young man on acid realized that all matter is merely energy condensed to a slow vibration, that we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves. Heres Tom with the Weather.â€
― Bill Hicks
I think that most of us know that the Stock Market is being controlled by forces other than “investors”. As far back as the 1980’s a Group of Bankers was set up to prevent a Stock Market Crash. Although that Group had some Government oversight at the time, it no longer does. Today they can create new money to buy up Stocks and thus cause a falling Stock Market to rebound.
The recent Market pattern of sharp drops being followed by nearly equal gains is what we would expect to see as real investors cashing-out is followed by new money (created out of nothing) coming in to replace it.
I have read that nearly 80% of Japan’s Stocks are government owned. At least it’s transparent. We don’t even have a way of knowing how much of the American Stock Market is owned by the Government and/or the Banks it is indebted to.
When it will all collapse is a matter of when the Banks pull the plug, eh!
Internet policing has started in UK
https://www.bbc.com/news/uk-51812326
Am I at the wall?
More and more I have only one response; “Wouldn’t it be interesting to see the whole thing?”
I’m sure I’m a simpleton, I must be.
The only question
Is the system closed or no?
Get clean, comfy and ordered. Something may carry you over.
What is the mind that sees the whole?
Convert the fear into energy:
https://www.bodypsychotherapy.info/en/about-body-psychotherapy/
Time to wake up the legs my friendos, activate the suit. If bogeymen fear anything of us scrounglings, it’s this.
You have so much energy in your body it’s terrifying.
A CFR Coronavirus conference cancelled due to… Coronavirus!
https://www.bloomberg.com/news/articles/2020-03-10/coronavirus-conference-gets-canceled-because-of-coronavirus
How undeniably convenient.
Well that’s funny. That was my reaction to the news of the British junior health minister being diagnosed with coronavirus and “immediately adopting all the prescribed quarantine measures”:
https://www.ft.com/content/004fc65a-6363-11ea-a6cd-df28cc3c6a68
How convenient.
Remember Corbett’s article from October about the overnight lending Repo market which started in September?…
…“Everything (g)Old is New Again: What QE4 Means For You”
Now ‘QE4’ is in hyperdrive. Is this “QE4 expanded quantum space drive”?
Way over a trillion dollars!
Boy oh boy!
NEWS
(links to other stories in article)
March 12, 2020 Thursday
Stock market news live:
S&P 500 enters bear market, Dow plunges 10% in biggest one-day percentage drop since 1987
https://finance.yahoo.com/news/stock-market-news-live-march-12-013620137.html
March 11, 2020
Jason Burack of “Wall Street for Main Street” gives an excellent rundown on the oil market and the economy.
This follows the Saudi and Russia targets of flooding the market with cheap oil recently, which made the marketplace cough up a hairball.
For an overview of what Jason discusses, see his shownotes which has links to referenced articles.
Repo Madness Returns: The Bad Oil Debt & Oil Derivatives Failing Edition
https://youtu.be/318iwX1xS30
This caught my attention:
“According to the Bank of International Settlements, there’s over $1.2 trillion dollars worth of “notional amounts outstanding” energy derivatives.”
March 12th Thursday evening
Jason Burack gives a rundown of top finance stories (with links provided), and discusses the trillions which The Federal Reserve is throwing into the game.
Of interest…
Jason talks how governments will change the rules.
He cites an example of 2008 when “short sales” were suddenly banned and folks lost their money.
Who knows?…Oil or other things could suddenly be labeled a “National Security Issue”.
He also mentions the VIX.
The VIX has been at record levels, and he points out that in the past, this huge volatility has been a premonition that we are still far from a bottom in the marketplace.
“WallStForMainSt ”
Fed’s New QE Helicopter $$ Drop & Giant Repo Madness Scheme Fails To Stop Stocks Crashing
https://youtu.be/qJLebmaPgEM
As already indicated, National emergencies great for wall street:
“Spectacular rebound on Wall Street
Reuters Staff
(Reuters) – The New York Stock Exchange ended the week up a spectacular 9.36 percent on Friday after Donald Trump announced a national emergency to fight the spread of the coronavirus.
Even before Donald Trump’s decision, which paves the way for the release of 50 billion dollars, investors had been reassured, among other things, by the injections of liquidity totalling 1,500 billion dollars (1,350 billion euros) announced by the US Federal Reserve after new measures to ease its monetary policy decided on Thursday by the European Central Bank (ECB).
The European Commission has announced an initial package of 37 billion euros, Berlin says it has 500 billion euros available to be mobilized if needed, and in the United States, Treasury Secretary Steven Mnuchin spoke of progress in discussions between the White House and Congress on support measures….
VALUES
All sector indices ended up higher and the financial stocks index gained 13.23% as the prospect of further Federal Reserve action boosted Treasury yields.
The travel sector, which was hard hit by the health crisis, also recovered. Hoteliers Marriott International, Hilton Worldwide Holdings and Hyatt all gained at least 1%.
Boeing jumped 9.92%, but still suffered the biggest weekly decline in its history.
Apple, which is a major contributor to the S&P 500 and Dow Jones, gained 11.98%, after announcing the upcoming opening of 42 stores in China.
https://fr.reuters.com/article/businessNews/idFRKBN2103BT
This rollercoaster won’t crash until poeople start to refuse accepting dollars as legal tender.
Friday March 13, 2020
MarketWatch
U.S. stocks score biggest one-day gain since 2008 after Trump declares national emergency over coronavirus
https://www.marketwatch.com/story/stock-futures-fall-again-indicating-ominous-start-to-trading-on-friday-the-13th-2020-03-12?mod=home-page
“…Boeing jumped 9.92%, but still experienced the largest weekly decline in its history…”
sort of emblematic…
Sunday March 15, 2020 – Ides of March
Stock futures opened sharply lower Sunday evening, even after the Federal Reserve launched a massive monetary stimulus program — including cutting rates to effectively zero and unveiling plans for large-scale asset purchases…
https://finance.yahoo.com/news/stock-market-news-live-updates-march-16-2020-220735000.html
more EXCERPTS
Markets are in for another rollercoaster week, as policymakers continue to ramp up their responses to the global coronavirus outbreak…
…Specifically, the Fed slashed benchmark interest rates rates by 75 basis points to a band of between 0% and 0.25%. Underscoring the growing fears of a worldwide recession, the surprise announcement came just days ahead of the Fed’s scheduled March monetary policy meeting on Tuesday and Wednesday — and less than two weeks after the Fed had also unexpectedly cut rates by 50 basis points to a range of 1.00-1.25%.
Many market participants had expected the Fed would vote to cut rates to a zero lower bound for the first time since the financial crisis, but anticipated it would happen at this week’s meeting. The Fed will no longer hold its previously scheduled meeting, Fed Chair Jerome Powell said during a press conference Sunday evening.
In a statement, the central bank said it intends to maintain the new target interest rate band “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.â€
The Fed also unleashed a further set of tools to address economic impacts arising from the COVID-19 pandemic, announcing a quantitative easing program that would include purchases of $700 billion in assets, comprising $500 billion worth of treasuries and $200 billion in agency-backed mortgage securities.
“The Fed is dusting off the financial crisis playbook, returning to bond buying, coordinating with other global central banks to provide access to U.S. dollar liquidity, cutting interest rates to zero and opening the Fed’s discount window to ensure the flow of credit through banks to consumers and businesses,†Greg McBride, Bankrate chief financial analyst, said in an email….
Monday March 16, 2020 at ‘The Close’
Coronavirus jitters send Dow swooning to worst-ever point loss, closes at near 3-year low
(Links to other articles in this one)
https://finance.yahoo.com/news/stock-market-news-live-updates-march-16-2020-220735000.html
EXCERPTS
…The Dow dived by 2,997 points, or 12.93%, and tumbled to 20,188.52, closing at its lowest level since May 2017 after President Donald Trump warned the crisis may drag on well into the summer months. The sell-off represented the index’s biggest percentage decline since the “Black Monday†crash of 1987 — and the 2nd worst in its 100-plus year history — as well as its largest point decline on record.
Amid a day of heavy selling in which benchmarks tripped “circuit breakers†at the opening bell meant to curb losses, the S&P 500 and Nasdaq also posted steep losses, falling by 11.98% and 12.32%, respectively. The Nasdaq’s percentage decline was the worst on record, back to its creation in 1971.
Federal Reserve rescue no help
Stock futures had opened sharply lower Sunday evening, even after the Federal Reserve launched a massive monetary stimulus program that included cutting rates to effectively zero, and unveiling plans for large-scale asset purchases….
Oil
WTI crude traded at the lowest in over four years on Monday, on persistent concerns over slowing global oil demand due to the coronavirus outbreak. Pressuring prices further were threats from Saudi Arabia and its allies to flood markets by increasing its production, sparking fears that a supply glut could develop this year. Riyadh has started a price war for industry dominance after the collapse of the OPEC+ alliance early this month. The kingdom has slashed prices and announced a massive output increase. Goldman Sachs said it now expected a record oil surplus of six million barrels per day by April. US crude dropped as much as 12% to below $29 a barrel while Brent fell more than 13% to below $30 a barrel around 02:30 PM NY time.
https://tradingeconomics.com/commodity/crude-oil
Homey ! Oil! Blood is in the streets! Its time to make some Money! Stock piles? Tanks, ships, underground gas reservoirs, tanker cars, played out wells, your backyard pool. What a time to stock up.
The role of Refineries in this era is a little understood phenomena. I know the depth and interconectedness is part of the overall picture but what is it?
It is a crucial point in the line of suffering put on the markets and consumers. If you act up or get out of line , the refiners will make you pay.
https://www.bicmagazine.com/industry/commodities/u-s-crude-stockpiles-rise-more-than-expected-as-refiners-cut/
Cushing, Ok sure ain’t gonna provide a cush’in in all of this.
I think that the finance news cycle will soon start focusing on all the credit providers who loaned out money to the oil industry and other companies. Now we got lots of Junk Bonds out there.
A lot of lemmings going over the cliff, Disney style.
Someone is not gonna get all their money back…including folks with pensions and 401k’s.
Homey , interesting story or two here.
1. Barclays predicts 55-60 cents on the dollar of leveraged loans.
2. Chinese authorities to lessen restrictions in Huebi province with the passing of the Covid19,
https://oilprice.com/Energy/Energy-General/The-Oil-Price-War-Has-Only-Just-Begun.html
Homey or anyone, what’s the pattern here? Competition is a sin? Are the Rockefeller Commies going to wring out all the oil equity of the west?
To be perfectly honest, pensioners weren’t going to get their “money” anyway. It’s long gone.
I read that during the last oil price slump China went all in on stockpiles. Cash (liquidity) is still king.
“Boom Bust”
Monday March 16
Markets Crash despite Fed Rate Cuts
https://youtu.be/afXBj-SS4Gs
11:44
“Using AI to combat Coronavirus… tracks the virus by analysing newsreports socialmedia and goverment documents”
Is this just me being a bit paranoid or has any one else noticed the recently (forced)autocorrection on WA with no setting to chose the “switch off” function? (or maybe i havn`t found it)?
Will average Americans get a check in the mail from Uncle Sam?
March 17, 2020 – Tuesday – Wall Street and more
“Boom Bust”
Coronavirus: Markets slightly rebound after Fed stimulus plan
https://youtu.be/IdB4BmdvuG4
March 18, 2020 – Wednesday
Yahoo Finance News
Dow closes at 3-year low below 20K, wiping out nearly all of Trump era’s gains
EXCERPT
…Wednesday’s volatile session shaved over 1,300 points off the Dow Jones Industrial Average, which settled below the psychologically-important level of 20,000 — its lowest close since February 2017 and deep in bear market territory. Oil’s demand and supply woes have also dragged the commodity to its lowest levels in nearly two decades.
(WTI went down to the low 20’s a barrel. Gold~$1490 Silver~$12.21)
Meanwhile, the S&P 500 plummeted, triggering a market-wide temporary halt to trading before closing down by over 5% on the day. This was the second time in three days the blue-chip index invoked a so-called “circuit breaker†during regular trading, which are intended to prevent extreme losses….
March 18th
“Boom Bust”
Halt in trading on a wild Wall Street day
https://youtu.be/hBaUUNYWRuI
Descriptive
The Coronavirus pandemic is closing not just markets, but now borders including the world’s largest land border, and amid the drop in travel, the aviation industry is asking the Federal Government for a bailout. Markets are back in free fall, despite proposed stimulus measures as the circuit breaker was again triggered causing a 15 minute halt in trading. The Trump administration is now discussing a plan of as much as $1.2 trillion in spending, but market reaction has not been favorable. And as the world’s population continues to follow the overwhelming amount of news regarding the coronavirus pandemic some of the latest announcement in tech aren’t receiving a lot of attention.
March 18, 2020 – Wednesday
New York Stock Exchange to move temporarily to fully electronic trading
https://www.reuters.com/article/health-coronavirus-interconti-exc-idUSL4N2BB54W
– Full article (It is brief) –
March 18 (Reuters) – Intercontinental Exchange Inc said on Wednesday that the New York Stock Exchange will temporarily move to fully electronic trading beginning March 23, due to the coronavirus outbreak. (Reporting by Munsif Vengattil in Bengaluru; Editing by Ramakrishnan M.)
March 19, 2020
Thursday
“Boom Bust”
Coronavirus reality: Internet crashing as demand spikes
https://youtu.be/Lv60fJ3O2KE
NOTE:
“Short Sell Restricted List”
DOLLAR AT HIGHS
Descriptive
Published on Mar 19, 2020
The US dollar is in demand worldwide having the dollar index jumped to its highest level since January of 2017. The Federal government is injecting money to the U.S. economy, while 30 million people could be unemployed as a result of layoff or reduction in work hours. Plus, some firms, like Tesla and Ford, are stepping up to fill in the gaps of the epidemic manufacturing medical needs like ventilators. Finally, with quarantines and social distancing now becoming the norm, there are concerns about the internet potentially crashing, with colleges, high schools and elementary school moving classes online and millions of people using telecommuting software to work from home.
DXY – Dollar Index
The DXY traded around 101 on Friday, down from an over 3-year high of 103 on Thursday, amid mounting concerns about the economic impact of the coronavirus in the US economy after California ordered near 40 million people to stay at home in an attempt to stop the spread of the virus. Investors worry that other US states will follow California. On the week however, the dollar was on track to record its best gain since 2008, as stock market crush and business closures prompted demand for liquidity and funding.
https://tradingeconomics.com/united-states/currency
From what I’ve looked at, in reality, though there is congestion on parituclar sites, the “internet” is in now way “under strain” or in danger of “breaking” or “crashing”.
But I’m afraid that people will easily believe that it is should they be told so
and that this pretext will be used to censor certain so-called “disinformation” alternative news sites and sell 5G.
…In a statement, BT said: “The additional load… is well within manageable limits and we have plenty of headroom for it to grow still further”.
Friday – March 20, 2020
US Stocks Plunge on Friday, Book Worst Week Since 2008
Wall Street sold off on Friday, as fiscal stimulus uncertainty and a rapidly spreading virus weighed on sentiment and stocks suffered their worst week since 2008.
On Friday, the Federal Reserve announced it is expanding its asset purchase program to include municipal bonds. However, the Senate has been unable to deliver a fiscal stimulus package, raising investors´ concerns.
Lockdowns and further social restrictions in California and NY have been announced while coronavirus cases continue to spike in the US and abroad, with Italy suffering 627 deaths in just 24 hours.
On the corporate side, CNBC reported that Ronin Capital, a clearing firm at the CME Group, was unable to meet its capital requirements.
The Dow Jones plummeted 913 points or 4.6% to 19,174 points.
The S&P 500 sank 105 points or 4.4% to 2305.
The Nasdaq plunged 271 points or 3.8% to 6880.
Considering the full week, the Dow lost 17.3%, the S&P 500 fell 15% and the Nasdaq declined 12.6%.
https://tradingeconomics.com/united-states/stock-market
Monday – March 23, 2020
Yahoo News Wrap
Stock market news live:
Wall Street tumbles despite Fed’s ‘Big Bertha’;
stimulus fails in Senate
https://finance.yahoo.com/news/stock-market-news-live-updates-march-23-221605039.html
EXCERPT
The virus’ rapid spread has led to social distancing policies that have all but brought America’s public life to a grinding halt — and pushed stocks from record highs into a bear market in record time.
GRAPHS and more from Zero Hedge
Gold Surges Most Since 2009 After Fed Unveils QEternity, Stocks & Bond Yields Tumble
https://www.zerohedge.com/markets/gold-surges-most-2009-after-fed-unveils-qeternity-stocks-bond-yields-tumble
“Real Vision Finance” often has some great pieces.
However, it is mostly in “Finance Speak” (Finance Nomenclature), so it is not really geared towards the average Joe.
March 23, 2020 – This presentation is insightful. Pension Funds and a vast variety of factors are discussed.
Economic Apocalypse: Here come the Helicopters |
The Big Conversation
(16 minutes)
https://youtu.be/EfMF0MB3AP8
March 24, 2020 – Tuesday
Zero Hedge
“The Gold Market Is Breaking Down”: Gold Spreads Explode As LBMA Warns Of Liquidity Problems
https://www.zerohedge.com/commodities/gold-market-breaking-down-gold-spreads-explode-lbma-warns-liquidity-problems
EXCERPTS
Last night, when observing the unprecedented “gold run” on precious metals dealers which has left all gold vendors with little to no physical gold, we said that “the price of physical gold has decoupled from paper gold” as a result of paper gold liquidations as leveraged funds scramble to cover margin calls using safe assets…
…As Kitko notes, just before noon EDT, one price vendor was showing spot metal was trading at $1,612.10 an ounce while at the same time showing the Comex April futures were at $1,654.10 an ounce – a spread of $42 an ounce. It was much wider earlier in the day, when as Kitco adds, “nearby futures were more expensive than deferred, a sign of strong demand in any commodity market.”
“I’ve never seen that before,” said one gold trader who has been in the market for 30-plus years. Some contacts reached by Kitco suggested the discrepancy is an evolving story that is still unfolding, with traders trying to figure out what’s happening.
Earlier in the day, the London Bullion Market Association, the world’s most important authority for physical gold and its transfers, issued this stunning statement to Kitco:
“The London gold market continues to be open for business. There has, however, been some impact on liquidity arising from price volatility in Comex 100-oz [ounce] futures contracts. LBMA has offered its support to CME Group to facilitate physical delivery in New York and is working closely with Comex and other key stakeholders to ensure the efficient running of the global gold market.”
In short, the unprecedented scramble for physical metal coupled with continued liquidations among levered players, while refiners remains offline, appears to be fracturing the gold market from within….
Tuesday – March 24
Yahoo Finance
Stock market news live: Stock futures slip after mega-rally carries Dow to best day since 1933
https://finance.yahoo.com/news/stock-market-news-live-updates-march-25-2020-221501559.html
EXCERPTS
Stock futures were slightly weaker on Tuesday evening, following a day in which Wall Street bet big on Washington’s warring political factions coalescing around a $2 trillion stimulus package to combat the effects of the coronavirus.
Dow, Nasdaq and S&P 500 futures all dipped slightly after opening, as markets awaited word of a final bill in the Senate. In Tuesday’s regular session, stocks staged a monster rally, with the battered Dow Jones Industrial Average posting its best day since 1933 by rallying over 11% to close up by over 2,100 points.
A day earlier, a brutal sell-off virtually erased all of the gains made since President Donald Trump was elected. The S&P 500 Index had its strongest session since 2008, while the Nasdaq turned in its best performance in 7 days.
The damage — both economic and political — from COVID-19 has stoked a widening debate over how quickly the U.S. can return to a semblance of normalcy. With his re-election chances likely to be defined by a recovery from the crisis, President Donald Trump on Tuesday called for the economy to be restarted by April 12 — but market analysts have their doubts about that timetable….
Tuesday March 24, 2020
Dow Books Best Day Since 1933 as Congress Nears Deal
Wall Street rebounded sharply on Tuesday, as President Trump signaled he is ready to reopen the economy, while a massive stimulus package to counter the economic effects of COVID-19 was imminent in Congress.
Both parliamentary sides were optimistic of landing a deal amidst rising casis in the US, which jumped 51.7 thousand with the death toll climbing to 667. House Speaker Nancy Pelosi told CNBC there is “real optimismâ€, while declaring on CNN that some details regarding food stamps and environmental regulation for the airline industry, expected to receive $40 billion in aid according to multiple reports.
On the corporate side, stocks of Norwegian Cruise Line soared 42% and of American Airles 36% on stimulus hopes, while Boeing shares rallied 20%.
The Dow Jones booked its best trading session since 1933, gaining 2113 points or 11.4% to 20705.
The S&P 500 jumped 210 points or 9.4% to 2447, while the Nasdaq climbed 557 points or 8.1% to 7418.
(9 hours ago)
Gold Surges 5%
Gold rose over 5% to a more than one-week high on Wednesday, underpinned by this week’s efforts by the Fed to soften the economic impact from the coronavirus epidemic. Also supporting the bullion, three major gold refineries in Switzerland have suspended operations hampering shipments of gold to the US to meet contractual requirements. The precious metal was trading above $1,630 an ounce around midnight London time.
https://tradingeconomics.com/stream