PRE MARKET WOW

HEADLINES

Coronavirus Cases Rise Above 20,000 in China as Hong Kong Reports First Death

Coronavirus Closes China to the World

New York City Investigating Three Possible Cases of Coronavirus

Apple Closes Chinese Stores, Corporate Offices Due to Coronavirus

Avian Influenza in China Adds to Economic Concerns Amid Coronavirus Spread

Australia Restricts Travelers from Mainland China as Virus Impact Spreads

U.S. Imposes Entry Restrictions Over Coronavirus

Coronavirus is Declared a Global Health Emergency as Threat Rises Outside China

Global Corporate Giants Limit China Travel in Response to Coronavirus

Deadly Infection Keeps Chinese Consumers from Spending

Coronavirus Patient in Hong Kong Dies as Macau Closes Casinos for Two Weeks

Morons In Iowa Who Had 4 Years To Prepare Cannot Even Come Up With a Number

Ok…that last one came from us. Think about this. All the volunteers walking door to door for months, all the headlines leading up to yesterday, all the hope by candidates who spent tens of millions of dollars in advertising, all the momentum that some candidates had…gone! Just think about that. Our main thought is that this is the party that wants to break up, shut down or take over every industry.

Back to the headlines…the last headline:

Global Stocks Rise This Morning as FILL IN THE BLANK

DOW futures are up a whopping 370 points while the NASDAQ 100 futures are up almost 140 points. The NASDAQ 100 is almost back to its all-time highs with Tesla (TSLA) up another $100+ this morning off of one of the biggest short squeezes we have seen in quite a long time. Apple (AAPL) is up $7 even though 1/6th of their stores are shut…for now. Central banks=bubbles. We do expect to see more names to do what Tesla is doing as central banks have created a moment.

The bottom line is that whatever turned the market down is now in the past…maybe, possibly, could be. Many are saying China’s now $300 billion of added liquidity in less than 2 days is doing the trick. We believe they are mostly right. This has been the default setting of central banks for more than a decade…markets get in trouble, just ease or just print.

For sure, the complexion has changed for many areas that recently topped but for sure, this event out of China has not changed the overall environment for equities as central banks are still printing trillions, continuing to lower rates with many keeping rates negative. Bulls should be thrilled that growth is already again re-asserting itself with TECHNOLOGY et al again in the lead. We have never seen a bear market when TECHNOLOGY is leading.

More to come!

2 replies
  1. Avatar
    Earl Rothfus says:

    I have to think this morning’s open has more to do with Iowa incompetence making a Trump reelection more likely than any other reason.

  2. Avatar
    Butch says:

    Re: Morons In Iowa
    Me thinks the powers that be did not like the results and they are trying to fix it ex post facto.

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