It was a rather volatile day for traders Tuesday, which “turned” out to live up to its “trade name”, Turn Around Tuesday. From Monday’s exuberance to Tuesday’s doldrums, implied volatility rolled lower despite the rather outsized level of intraday, realized volatility in the market as gauged by the total movement in the S&P 500 (SPX).…
If you are bullish on markets near-term, Monday’s market action likely increased your bullishness. The major indices all rose more than 3%, led by the tech-heavy Nasdaq (NDX), which is something we desired to see in order to aid in our belief in the 10% rally in the benchmark S&P 500 (SPX) from the previous…
Today’s Daily Market Dispatch is a condensed version of our weekly Research Report (Published Sundays). If you appreciate the analysis, articulations and detailed content, upgrade to our Contributor Membership level and access our full-scale Research Reports & State of the Market videos weekly. Thank you, be safe and enjoy! Bear markets are never easy; they…
Over the weekend the COVID-19 situation improved all the EU5 countries. Not only did the growth in net active infection rate fall in all countries, but new cases at least stabilized across the region. In particular Italy resumed the fall in the growth of net active cases, reaching 5% on Sunday, and new cases started…...
Services get pummelled in March; worse is to come Global Economics Update 24 March 2020 WRITTEN BY SIMON MACADAM The March Flash PMIs for advanced economies were dreadful. The composite PMI for DMs plummeted to a level just shy of its all-time low. With the lockdowns only getting underway, worse will come in April. Today’s…
The trading week in review kicked-off with more whimpering and selling pressure before rallying some 17% over the next 3 trading sessions. Unfortunately, the first trading day of the week was mirrored on Friday with more fear, selling pressure and as another risk-off weekend ensues. The book-ended down days for the week has been commonplace…...
Welcome to this week’s State of the Markets with Wayne Nelson and Seth Golden. Please click the following link to review the SOTM video. COVID-19 continues to plague markets and has taken the economy as a prisoner until further notice, with society practicing social distancing. The U.S. economy has taken measures to track, reduce and eventually contain COVID-19, but the measures…...
A “buy everything rally” ensued on Tuesday, which is known as “turn around Tuesday and which has held true of late. The past 3 Tuesdays the S&P 500 (SPX) has closed up 4.9%, 6.0%, and 9.4 percent. If you only invested on Tuesday, the S&P 500 is up 16.6% so far in 2020. Unfortunately, the…
Over the past few days, economists and strategists are coming out with forecasts for economic growth, earnings, and asset prices. These forecasts range wildly from 20, or 50% or 70% declines on any of these measures. In reality, all of the measures forecasted heavily depend on how long the economy will stay shut down in…...
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