I don’t give a shit how you feel about Trump — this is some stupid shit. Incredulously, and in the midst of a pandemic breakout, Trump placed VP Pence in charge of the coronavirus response in America. What in the fuck is going on here?
I’ll tell you what’s going on. Narcism. This is how rich people act. When faced with an issue that is inextricable, they find fall guys — someone to shit upon. If Pence does good, Trump is a genius for appointing him. It’s all bullshit and people know it. He announced for a surprise meeting at 6:30pm today to discuss the virus. His plan was literally shit upon by Wall Street and now we’re really reeling.
Dow futures are OFF by 315, Nasdaq raped for 125.
Over in Germany, futures are lower by 2.4% and hilariously, Chinese equities are HIGHER by 0.4% — because that entire country is a scam.
The news is all bad, with breakouts all over the world, especially S. Korea and Italy. More specific to market stress is WTI and Brent crude, now crushed to $48. This will soon manifest itself by way of credit ratings and potential defaults for the oil sector.
Needless to say, we need some reflation and we need it soon. Do not be surprised to see the Fed ginning up some scheme soon. I sleep tonight with nearly 50% cash, short semis and FANG and long a shit load of virus stocks — but I too know this market rout can be suspended at any point in time with one presser from the Fed. My actual sense of the matter is, we deserve to trade lower by at least another 10%. Under those conditions, there is an enormous amount of money to be made short semis.
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