TODAY’S WILD SWINGS

Powell telegraphs more moves on Friday. Just 2 days after fed meeting and presser, Powell again sees markets down and yells “we have tools!” That was Friday. Today, Dow opens up down 750 which means today, the maniac used the tools…not just buying up BOND ETFs but individual bonds. We cannot begin to tell you how maniacal this is but that’s for another day. Markets, as usual, reacted well. After selling off in the 3 pm hour, we got the obligatory “Powell Securities” rally into the close. (That was not sarcasm.)

We expect the market to gap up tomorrow off of this as everything held support on this recent 10% pullback in the Dow. Powell’s modus operandi continues to be…EVERY TIME MARKET GETS IN TROUBLE…EASIER AND EASIER MONEY…MORE AND MORE PRINTING. So far, he is having his way as every time market has corrected since XMAS 2018, he has made a move and every time, markets went up.

Just realize it is taking more and more and more and more and more and more to get markets moving his way. The amount of money printing here is depending on which abacus you use…in the “drum roll” a whopping $8 trillion. This does not include Europe who just went another 1.3 trillion euros as well as the rest of the central bank maniacs around the globe. But this guy here is taking the cake, throwing in the kitchen sink and everything else under the sun.

Enjoy! More than likely, he is again guaranteeing higher prices but we get closer and closer. We will be ready when it all ends.

MARKET WRAP/PRE MARKET

We hardly ever say one day’s action does not matter. We’ll now just say does not usually matter as yesterday was a big one.

Coming into yesterday, we were less than thrilled with the ridiculous froth and speculation that had been showing up.

DUO…the stock hardly trades but rallied from $10 to $129 before crashing back to $47 the same day. Why? The name of the company is FANGDD NETWORK. Get it…FANG…FANG STOCKS MOVING HIGHER. We are not making this up. A low trading, dead stock rallies like this because it was mistaken as something to do with FANG stocks. We are not making this up.

Bankrupt companies where odds favor that equity holders will get wiped out…rally up from pennies. Chesapeake Energy rallies from $12 to $77 is less than 2 days. Ooops. Once the realization sets in, it is already back to $18. By the way, that stock price is off a 1-100 reverse split. A bunch of other names either in bankruptcy or about to were on the move. Hertz is another name who may be getting away with an issuance of stock because of the speculation.

A ton of secondary offerings. We mean a ton of secondary offerings have been issued.

Put/call figures continuing to stay at huge levels of bullishness and complacency. Everyone and we mean everyone betting on higher prices in the options market.

But just because there is froth and speculation, it does not mean the market must drop. It is just very often a precursor.

We gap back up this morning…a portion of yesterday’s drop. The big part of the damage yesterday was all the areas off the bottom that rallied strongly, gave the whole breakout back. This morning, those areas like airlines, cruise lines, oils and financials are bouncing nicely.

The blame is being put on the virus accelerating. All we know is that was one ugly day. W ewill know a lot more on how this bounces, how far it bounces, how strong it bounces.

While there was damage in growth names, after scanning last night, just some nasty pulling in with only a few breaking the 50 day. But same names gave back 3 weeks of gains in 1 day.