MARKET WRAP

Crappy finish. Past 3 days may be showing the near-term wall from the recent crash lows rally. Thinking we go into some sort of pull back but don’t think much chance of breaking recent lows. More of a chance that we go range-bound for a bit with past 3 days a high.

BIG PICTURE…REMAINS GROSS AS EVERYTHING TRADES BELOW LONGER-TERM MOVING AVERAGES.

Lastly, be careful of big dividends. Seeing people excited that some names paying double digits. There is usually a reason and already seeing some dividend cuts.

RADIO SHOW 3/31- THANK GOD IT IS THE END OF QUARTER EDITION

SOURCE: https://archives.warpradio.com/btr/investorsedge/033120_18.mp3

MARKET WRAP/PRE MARKET/ #CORONAVIRUS MAP

Futures down a few this morning after a good day yesterday. Volume was lighter.

Improvement off of last week’s low. It was last Monday where we thought A LOW was being put in because of a bunch of positive divergences combined with a HUGE DOSE of continued bearish pessimism. But the move was stunning. Then again, after such a drop, you never know.

We would love to see contracting volatility here which enables us to see things better. Relative strength is easier to isolate. Chart patterns tighten up. We suspect or hope we start to get some of that.

This morning’s coronavirus map!

https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

 

YESTERDAY’S MARKET WRAP/TODAY’S PRE-MARKET

Up 1300 yesterday…500 in about 2 minutes at the close. As we write this, down 750.

Need we say more. The A LOW call from Monday stands. Every DOW point up makes it stronger and with Powell going to print $10-20 trillion, who knows? Yes…they say $4 trillion…yeah sure. Powell had already printed like $1 trillion from October-February…BEFORE the virus.

Big report over the weekend. STAY WELL!

MARKET WRAP

We now tape radio that airs at 6 pm because of the virus situation. When we taped today, we made sure to mention that the nasdaq/tech/sox were doing the opposite of Monday. On Monday, they led big time. Today, lagging. Markets sold off into the close led by guess what? Those areas. Not sure what that means but we always want “risk” areas leading.

Markets were hit because “the bill” may be stalled. But let’s be clear, a bill will get done soon. Odds favor more upside testing but today’s petering out is of note.

Just lots of stuff off the bottom after basically crashing. And of course, we are going to see a lot more than $6 trillion coming out of these numb skulls so anything possible. If the deal is signed and markets still sell off?

 

MARKET WRAP

Well…we told you after the close yesterday that we expected some sort of rally as tech/semis/nasdaq were shining underneath the surface of the DOW down 562 points. Little did we know we would gap up around 1,000 and finish over 2,100.

Just a few thoughts:

More of central banks taking over the market. We hear they are buying up bond etfs. They are now going to add $4 trillion of printing. This on top of Kashkiri saying their money is unlimited even though it is conjured up money. A measly $2 trillion coming from DC but expect that number to rise a lot more.

As we scanned 1500 names tonight, just a lot of recoveries. Saw some 40% moves in names that were down 80%…which makes them still down 70%.

So let’s call it a darn good low for now. There is always the chance it is THE LOW. We would not be against that but a lot of work ahead.