Precarious Market Situation

[Kevin Morgan]

I generally agree with David’s Friday analysis.  He describes the “most like scenario”, namely, backing and filling above the Friday low, retesting of the Friday low, and perhaps a bit deeper excursion.

However, the nature of the driver of this correction (coronavirus infections and the world reaction to that issue) is somewhat unique.  The situation could get far, far worse, i.e., the daily # of new infections could start going up exponentially.  If this occurs, there is significant potential for a massive world economy slowdown as city after city go into some form of “lock down mode” ala what’s happened in China and what’s happening in Italy.  That in turn could drive a serious bear market, even a massive market sell off.  I don’t mean to be alarmist and I strongly urge everyone to take it “one day at a time” and focus on what the chart in front of us tells us.   We need very open minds to all possibilities here, and one possibility is a SPX level of below 2000 in the near future, if the world economy “locks up”.  Don’t discount it as “not possible, it is absolutely possible, even if it is unlikely.  It’s far, far, far more likely now than it was just a few weeks ago, and it may be more and more likely in the near future too.  Keep a close eye on new infections day by day: this data is available on coronavirus dot app on the charts page (menu is on the upper left).  I would urge everyone to be cautious.  Best of trading to all.

[Eugene Chen]

the question is, is this time different? people say that the classic mistake to say “this time is different”.

dave says, same story, different characters.

that being said, we are all fearful.

[Troy McMahon]

The fed is pumping a lot of money into what is happening and frankly it feels like were on a respirator of sort not to be negative were really not moving much it would seem almost like were suspended . Co-Vid has got to be the number one priority. Your right to take it slow The country will be forever change and complacency is a deadly step backward.
Hoping simply that we all try to remain vigilant , aware an informed. Not afraid . Good stock choices to all!
Troy M

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