Now back to business..
As you all already know, governments and central banks everywhere are trying as hard as they can to curb the effects of COVID19 on the economy. Trump managed to push the feds into continuing REPO and injecting more cash to prop up the stock market and he has ordered the energy sector to stack their strategic reserves with oil as much as possible. these efforts have created a massive demand for USD in the market which has caused all other currencies to dive against the USD along with precious metals like gold and silver.
the VIX index (aka fear index) soared to 75 on Thursday and it has closed above 50 for four straight days.
in my opinion its still too soon to label the efforts taken so far, as effective..
COVID19 is only one element of this whole mess... we also have the corporate debt bubble which is close to bursting with how low the oil prices have gotten lately (which is why I think the recent dive of BTC is a good opportunity to buy and hold for a year or two.. fighting debt with adding more debt has never worked before and with feds printing so much USD, BTC is going to appreciate A LOT in the next 24 months)
for next week, I'm going to just stick to sharing pure technical analysis for analyzing the charts and highlighting important price levels, sharing the different scenarios I can see the market moving in, and just let you guys judge things on your own.
Have a nice weekend
As you all already know, governments and central banks everywhere are trying as hard as they can to curb the effects of COVID19 on the economy. Trump managed to push the feds into continuing REPO and injecting more cash to prop up the stock market and he has ordered the energy sector to stack their strategic reserves with oil as much as possible. these efforts have created a massive demand for USD in the market which has caused all other currencies to dive against the USD along with precious metals like gold and silver.
the VIX index (aka fear index) soared to 75 on Thursday and it has closed above 50 for four straight days.
in my opinion its still too soon to label the efforts taken so far, as effective..
COVID19 is only one element of this whole mess... we also have the corporate debt bubble which is close to bursting with how low the oil prices have gotten lately (which is why I think the recent dive of BTC is a good opportunity to buy and hold for a year or two.. fighting debt with adding more debt has never worked before and with feds printing so much USD, BTC is going to appreciate A LOT in the next 24 months)
for next week, I'm going to just stick to sharing pure technical analysis for analyzing the charts and highlighting important price levels, sharing the different scenarios I can see the market moving in, and just let you guys judge things on your own.
Have a nice weekend
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I want to ask what are your views on stock market...will it dive again or is it the end of the bearish run for US stock market..?
Thanks !
I think European markets are going to get hit hard in the next 2 weeks and overall I still expect more bearish run for both US and european markets. at least for another 4 weeks.
since the virus has an incubation of 2 - 10 days, naturally the panic inducing headlines will keep coming in waves every week. but I think the fear will be dialed down a lot after 6 weeks (when most people in the world are infected and recovering from it)
either-way investing in the stock market will be a long term one. this time it might take more than one year for the market to recover from this mess.
Bank of America
Southwest airlines
Lyft
Pfizer
Cisco
Walmart stores
American airlines