I have no fucking idea why futures are lower tonight. The LSTA leveraged loan index was higher, oil is up 3% now, and Asian markets are garden variety down by 1.7%. Dow futures are lower by more than 600, absconding with more than HALF of today’s gains, extra Thanos.
Incidentally, I am 80% in on the long side, no virus stocks, loaded up with two 3x leveraged instruments. In other words, I may be HOOKED.
I do have a little leeway, since my basis on those positions are significantly lower, taken on today when markets were only +100. It’s the fucking nature of the market to always rape and pillage. It’s always like this during routs, dark clouds of uncertainty rip thru confidence and we get these widening trading ranges. In 2008-2009, policy makers LOST. Contrary to popular belief, they lost because markets went down 75% before rebounding. That’s game-set-match. Since then, they’ve learned to head off these bear runs with stimulus and/or central bank intervention. We are now at the point, down 20%, when their actions must work, otherwise we might find ourselves quickly swimming downstream — stacking up losses in the magnitude of 40-50%.
If you enjoy the content at iBankCoin, please follow us on Twitter
How is this even strange/surprising though? You already correctly identified the following weeks to behave more like post-debt ceiling crisis of 2011 than post-Xmas 2018, i.e., volatility will remain elevated and there will be no V-shape recovery.
There will be plenty of opportunities for both longs and shorts–the best kind of market for the nimble traders.
Trump is a ass hat. We just hit 1000 cases of the Corona and our country will likely be looking at Italy style shutdowns in 2 weeks. Tried telling everyone we would be at 50 vix and 5000 cases of Corona by next Wednesday. I might be wrong.. we might actually be at 60 vix. 5000 cases is still in the sights and the real economic impact will start to be realized. We will not have the recovery that China has had.. they locked there entire country down and flogged people for not wearing respirators outdoors, required employers to provide 2 masks a day to employees when they did relax the lockdowns.. our government is telling our people not to wear respirators because they aren’t effective unless you’re sick. That’s straight bs. They know we don’t have enough respirators and our government hasn’t done anything to fix that. China repurposed factories and required them to make masks.. Xi spoke to his country and declared they were at war with coronavirus.. Trump continually plays it down and says it’s just a bad flu. When our hospitals are overrun he’ll change his tune and his reelection will be lost by then. long story short.. we have an ass hat for a leader and we are destined for a 2 month long seized up economy. Pain pain pain
The saying is “we get the leaders we deserve” but things will get better when the forces of white supremacy wane further in another decade.
Not + or – the President, but can’t SOME of you understand that there ARE things in this world that have NOTHING TO DO WITH TRUMP?!? This virus is NOT about him. It is infecting the entire planet and CERTAINLY Trump is NOT relevant to this.
As fer yee Cap’n, hope ya didn’t get HOOOked!
Ps. Anybody out there have that original video from the talking cigarette guy freaking out? I wonder (assuming his lungs are still functioning) what he is saying about this one!
He is the most incompetent political leader of the developed world by such a long shot and that’s wonderful: Thru his ineptness, he is getting more of his own voters killed by the virus than any previous president could have if said former president was in charge at this moment.
You’re an F’n idiot, fear and panic is going to do way more damage than the virus will ever do , but of course, a certified narcissistic libtard with a serious case of TDS is too ignorant to come to grips with that…..omb….omb….omb, ( orange man bad ).
This originated in China way earlier than they are admitting, why aren’t you yelling for Xi’ s head ?
Better yet, fill us in on what you’d do genius .
While Narcist is clearly a racist who has been trained to blame his imagined victim status for his failure at life, Trump has indeed been way slow in preparing tests, masks, people, etc.
Failure at life? At least I don’t need to sell “Exodus memberships” or whatever “products/services” everyday like you on a dying blog.
Exactly. Not disagreeing “fear and panic is going to do way more damage” at all and “orange man” is stoking fear and panic quite alright. I have no complaint. I am rooting for your beloved Fuhrer and indeed I sincerely want him to be reelected by the white majority again. Nothing else will bring the demise of the GOP as quickly as having him around for a few more years.
Rest assured that I only troll this site when there are at least a few more people read it during crashes. This shit gets repetitive quick.
Nothing is as it seems…
Let’s Get This!
asymptomatic with high R0.. That is why futures are down. How many people are obese in the USA. 70 million. What percentage of generics are made in Gina? 80%.. LOL
Instead of fiscal stimulus, interest rate cuts, financial bail outs for certain industries etc etc, how about the US government simply offers an OBSCENE amount of money to the first biotech firm, from ANY nation on earth, that is able to fix this thing? Wouldn’t fixing the underling problem of the virus itself be the best way to stabilize markets and boost businesses?
Understand the sentiment but that incentive is already in place. The company who finds the cure or vaccine will make oodles of money. They don’t need any government to make that offer.
It’s called capitalism.
Fair enough.. just saying a ludicrously high government bonus may serve to ‘motivate’ scientists to get their -sses in gear faster – especially if they are in a foreign country. Certainly a far cheaper way to get things fixed IMO
The key is getting test kits to doctors and hospitals so those who have virus can be quarantined. Maybe we can borrow some from Zambia or perhaps the govt can help ramp up production. Our moron President Nero was playing golf on Saturday .. that pretty much says it all.
Hey TC, I lurk most of the time, but generally appreciate your insight, I don’t know if you follow Karl at market-ticker or not , but his perspective on testing makes a lot more sense.
http://market-ticker.org/akcs-www?post=238413
Bear markets are tough. Hold tons o’ cash, trade quick.