Europe was up 8%, now only 3%. There is a little less than an hour left to trade there and I suspect markets will fade. We are seeing MASSIVE selling in areas of the economy most affected by the economic collapse caused by coronavirus. Cruise ships, casual dining, entertainment cannot catch a bid. I do think, however, casual dining is a solid long term buy down here. Stocks like DIN and CMG off their highs like this is just madness.
I had SOXL overnight and sold it for an 11.7% profit. I am 80% cash and only long tankers now, who are enjoying $300k day rates for shipping crude. In the space, I own DHT, FRO, and EURN.
I am concerned about the fade in oil and the way treasuries are trading — whip sawing around too much. I do not trust Congress to pass a fiscal stimulus bill this weekend and will not be holding anything risky over the weekend.
Empirically, VIX above $70 is a SHORT. However, the fact that it won’t go down suggest people are still buying puts. Also, we are seeing sharp declines in short dated treasury yields, a typical safe haven for money managers.
I like the market to fade here until 12pm, ramp until 3pm and then taper off again. We might resume the plunge on Monday.
BUYERS BEWARE.Comments »