Black Swans Circle Longest Bull
A sea of red was seen around the world, with the Euro Stoxx 50 Index now down nearly 7%, Japan’s Nikkei tumbling about 5% and Italy on the edge of a bear market.
Amid an increase in the number of global coronavirus cases (110K) and deaths (3,840), Italy locked down nearly a quarter of its population (17M people) as the World Health Organization urged governments to take decisive action.
The fears sent the benchmark 10-year Treasury yield below 0.4% for the first time ever, touching 0.3469% in overnight trade. In fact, yields on all maturities (including the 30-year and two-year) fell below 1% for the first time, with investors pricing a Fed rate cut to 0% in coming months. The flight to safety also saw gold futures blast past $1,700/oz overnight until the “sell everything” mindset kicked in, with the precious metal now falling back to $1,666/oz.
The failure of OPEC+ to agree on production cuts sent crude into freefall, plunging as much as 33% to $27 per barrel (it started the year in the mid-$60s). Besides a collapse in demand due to the coronavirus, Saudi Arabia launched an all-out oil price war by slashing pricing for its crude in an effort to push as many barrels into the market as possible. It was in response to a face slap from Russia, which refused to cut output further and insisted that U.S. shale producers should be made to share the pain.
In Asia, Japan -5.4%. Hong Kong -4.2%. China -3%. India -5.2%.
In Europe, at midday, London -6.4%. Paris -6.6%. Frankfurt -6.8%.
Futures at 6:20, Dow -4.9%. S&P -4.9%. Nasdaq -4.8%. Crude -21.2% to $32.54. Gold -0.4% to $1666. Bitcoin -9,4% to $7917.
Ten-year Treasury Yield -3 bps to 0.45%
Source: Seeking Alpha https://seekingalpha.com/
12:30 PM TD Ameritrade IMX
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*****ALERT NOTICE: Normal Daily Trade Strategy Briefing will be suspended today as Futures are LIMIT DOWN during overnight trade…Many of you have not experienced “limit down” sessions, so please review the NYSE Circuit Breaker Rules in the section below.
Stock index futures in the U.S. plunged the 5% limit overnight, triggering limit-down rules, meaning only transactions at or above that threshold are allowed. Once the market opens, NYSE circuit breakers will work like this: trading halts for 15 minutes if the S&P 500 falls 7% (to 2,764) at any time before 3:25 p.m. ET. Another 15-minute pause is triggered if losses reaches 13% (2,586). If the decline hits 20% (2,377.9), markets will close for the day
BOTTOM LINE >>> This is NOT the time to become a bold trader….Preservation of Capital is at UTMOST IMPORTANCE.
I CANNOT STRESS ENOUGH IMPLEMENTATION OF DEFENSIVE MEASURES.
LIVE TO TRADE ANOTHER DAY! CAPEESH?
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
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