Just in case you’ve missed it we’re (well, not me personally since I only invest in Banana Futures and Off Off Off Broadway Plays) over 30% below our Record Highs of a mere Month ago and pushing the January 20th, 2017 Valuations (only a 4% gain over 3 Years).
And we are Limit Down today before the Open (at least in Futures, 6.5% at the Bell which is just below the initial actual threshhold for a Trading Halt).
Greed still rules, witness yesterday’s Dead Cat but I think it’s damn silly, 19K if it holds and my estimation of actual value (if you consider Market Cap in any way related to Revenue which evidently most people don’t) only 10K so we have 50% more to go before bottom.
Oh, and 20% Unemployment and you can’t go anywhere and there’s nothing on TV and no end in sight. Tell me how you feel about it in a month.
Good Times. Proud to be ‘Murikan. Best Health System and strongest Economy in the World.
Stock futures drop, hit ‘limit down’ halt, amid unprecedented volatility from coronavirus crisis
by Fred Imbert and Yun Li, CNBC
Tue, Mar 17 2020
Stock futures pointed to big losses on Wednesday as the markets remained highly volatile with the government response to the coronavirus fallout still unfolding.
A violent reversal in Treasury yields in response to a potential $1 trillion stimulus package helped to unnerve investors.
Around 6:42 a.m. ET, futures on the Dow Jones Industrial Average indicated a more than 1,000-point loss at Wednesday’s open. S&P 500 and Nasdaq-100 futures were also down. Futures contracts for the indices were in “limit down” territory, a situation where trading is halted after futures have hit a 5% loss and can go no lower. The S&P 500 gained 6% on Tuesday.
Exchange-traded funds that track the indexes are not subject to limit-down restrictions, however, and suggested what the open would look like.
On Tuesday, CNBC learned the White House is weighing a fiscal package of more than $1 trillion that includes direct payments to Americans and financial relief to small businesses and the airline industry. Treasury Secretary Steven Mnuchin also said separately at a press conference that corporations will be able to defer tax payments of up to $10 million while individuals could defer up to $1 million in payments to the Internal Revenue Service.
“When you decimate the restaurant industry, the travel industry, the hotel industry, the airline industry .. the cruise line industry, obviously you’re going to take a huge divot out of economic activity,” DoubleLine Capital CEO Jeffrey Gundlach said on a webcast Tuesday after the bell. Gundlach put the odds of a recession at 90% and said it was “ludicrous” to think otherwise. He added he believes the stimulus will end up being even bigger than $1 trillion
Gundlach also commented on the reversal higher in Treasury yields, noting it could put the U.S. in the uncomfortable position of having both a weak economy and rising rates, as new debt issuance to pay for the stimulus floods the bond market.
Oh, Trading Halt (I’m watching people bash hot metal into weapons of murderous intent). Dow 18K.