The Fed is going in full compliments and will be funding companies directly, via this facility. As a result, markets have bounced a little and European trade has firmed. However, I am VERY concerned about how several sectors are trading — very spooky.
I have a Corona Fears index and it’s getting lit up today, off by 6%. My tell is BA — down another 16%.
I’m still all cash, only holding bonds and 1 virus stock. Fed policy helps, but it doesn’t lift the quarantine.
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back to neutral…
Iran releases another 85,000 prisoners. US/EUR vulnerability to terrorism can’t be understated
https://news.sky.com/story/coronavirus-iran-frees-85-000-prisoners-to-combat-spread-of-covid-19-11958783
Sobering here from Zoltan.
The take away I get is the Fed needs to bail out the world, not possible. If this plays out, it would be the end of cheap money, cash would be king, treasuries would sell-off, interest rates rise and some kind of depressive economy.
https://plus.credit-suisse.com/rpc4/ravDocView?docid=V7lLnU2AN-SO8
IRONIC that the market which was SO AFRAID of Bernie Sanders in February is now utterly reliant on government bail outs all of sorts, is it not?
Similar to when we start wars or give huge tax cuts to the $10M+ crowd, I’m not hearing anyone ask “how are we gonna pay for it?” People only ask that when a good person proposes helping out the poor.
I’m not betting big on it but I think we are due for a viscous bear market rally here. I think 2800-2900 is in play this week.
Was everyone a short term bull at 10 am or is it just the 6% spike that caused that?
$VMD a pure ventilator play……
I’m starting to feel bullish. It’s like a mental disorder.