As always, Ivanhoff and I take our Monday tour of markets.
We kept it short because there is so little momentum…unless you like short selling or trading corona virus stocks. We cover some of the leading stocks that should emerge when the selling ends. Last week there were signs that that sellers were exhausted. They seem to have spent the weekend gathering their energy.
You can watch/listen to the episode here.
This bear market has come quickly and it is a beast.
Stocks on the 52wk high list today: 0
Stocks on the 52wk low list today: 851 (out of 3341)
Michael Batnick has a great post titled ‘What Happens After A Stock Market Fall‘. The table is great:
With the United States on a quick path to a standstill, the only beacon of hope is that eventually the monthly and quarterly comps starts looking great once the virus passes. Stocks will not go up while we shutdown the country and possibly markets.
In the meantime, there is little the government can do financially to help boost markets (they panicked this weekend and cut rates to zero) and at a time we would like American corporations to do meaningful stock buybacks, they can’t (banks say they won’t to focus on lending).
I will sit on my hands again today and take my losses in the stocks I own.
I can’t imagine getting to levels today where I add stocks, but I have my lists.
I will end with a great Joshh Brown post titled ‘The One Thing We Know For Sure‘
Without a doubt, the news will get worse from here. But its ability to shock us will diminish.
The economic news about the US economy was not getting better at the end of the financial crisis. But stocks stopped going down every time that bad news hit. It took a lot of pain to get to that point, but eventually, bad news fatigue had set in. This happened with regards to potential terror threats in the wake of 2001. It happened during the Asian currency crisis of 1998. It happened during the Latin American defaults of the same era. It happened during the Ebola scare of 2014. It will happen now.
You must be fully prepared for both foreboding news about the contagion’s spread and, yes, even the death rate. You must also be prepared for how bad the March economic numbers are going to be relative to February. Some of these comps are going to be so astounding that they’ll look like typos. And it’s highly doubtful that anything turns sharply higher in April, based on the fact that nearly everything under the sun has been or will be canceled other than walking the dog and surfing the web. Kroger, Costco, Amazon, Target, CVS, Walgreens, Walmart and maybe Home Depot excepted – the nesting business is booming.
But as bad as the news will be, its ability to shock us will diminish. We will reach the point of “Let me guess, sales are down this month.” The shocks – and there are many shocks still to come – will continue. But our reaction to them cannot remain at the current intensity forever. We are not going to have a 75 Vix for six straight months.
If we know one thing for sure, it is this.
As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.