On April 9th, the Fed announced that they will extend credit to banks that issue PPP loans, purchase up to $600 billion in loans issued through the Main Street program to medium-sized firms. The moves also involve secondary corporate credit facilities that will allow the Fed to buy corporate bonds from “fallen angels” that have
Last Tuesday the market gaped up at open and hit the S&P 500 known resistance level 2750. Immediately it retreated and produced an intraday sell signal. The intraday sell signal was confirmed at the close by it closing at the low of the day. The next day should be followed with a new bearish trend […]
Last week the S&P 500 and Nasdasq both took out the previous week’s high, but were sold off immediately after the high was made on Tuesday March 31st. The Dow didn’t even take out the previous week’s high and it closed on the weak side on the weekly chart. This mixed picture points to a […]
In the last six weeks the S&P 500 cash index has dropped more than 35% measured from high to low. This has been the fastest decline in the history of the stock market. The furious decline only put a temporary bottom in last Monday when the Fed announced unlimited QE and the two trillion aid […]
Never has been such a panic attack in the stock market that has produced such a fast decrease in the stock price. Everything was sold off to raise cash. Every single asset class was sold off at whatever price, except the dollar. The US dollar is the single asset class rallied during the panic selloff. […]
We have been warning about the risk in the stock market as we were approaching the business confidence turning point of Jan 18th, 2020. When the news of the coronavirus breaking out in China in January, the market discounted as a China problem and continued to make a higher high in February after a brief […]
