Note the February countertrend rally on both charts: The first bounce is usually not the best bounce.
Something to keep in mind if one goes long equities on Monday.
Be nimble, be quick, don't burn your butt on the candlestick.
Holy Guacamole!February 27, 2020
That was only two weeks ago and there have been six bounces.
Here's the Dow Jones which we use because a) it's recognizable and b) with an r.92 -.98 depending on time-frame, it tracks with the S&P 500 remarkably closely considering the very different construction of the two indices.
The last one is way over there on the right as the Nazzy futures unfroze this evening.
Our little hedge, has dropped even further...
February 25
Is This The End For German Stocks?
...but not enough to help America-centric portfolios.
Here's this evening's story from ZeroHedge:
Nasdaq Futures Limit-Down, Crude Crashes After Trump Announces EU Travel Ban
Shortly after President Trump began his address to the nation, enacting a full travel ban from European nations for the next 30 days, the markets started to get upset.
Dow futures are down over 1000 points...
- S&P 500, Nasdaq and Dow futures fall 4-4.5%
- Both Brent and WTI futures down more than 6%
- Nikkei 225 drops 4.5%, Australia’s benchmark slumped 5% to confirm bear market status
- Main China stock indexes all fall at least 1%
- Kospi, Hang Seng, Taiex slide 3% or more
- Treasury 10-year yields decline 14 bps to 0.73%
- AUD/USD falls 0.3%, EUR/USD jumps 0.4%
- Malaysia, Korea, Philippine currencies all retreat 0.5%; Mexican peso tumbles more than 1%
Japan's Nikkei 225 is down over 350 points...
Nasdaq futures are limit down...
S&P is close to its 2,601 limit down...
And for the cash open tomorrow:.......MORE
I'm guessing there was no causal relationship between the travel ban and the market reaction.
Fewer and fewer folks are flying with each passing day.
Short of announcing a vaccine and a cure for the already-infected there wasn't going to be anything that happy-talk could fix.
