Governments are shutting down the economy to save our healthcare system and as long as the uncertainties exist with the length of this shutdown it is impossible to measure the collapse of the broader market and where the bottom might be. At this rate the cure will be worse than the virus. Long term support levels in the broader market are failing. The ascending support for the Dow and S&P 500 were broken last week and Nasdaq is the only broad index that is still holding above this … [Read more...]

Some thoughts as I sit at home and ponder what to do other than watch events unfold on TV and play out on my computer screen. Maybe I'll take Coco on another walk. Oh, it's raining. The Dow is still wildly unstable due to fear of the unknown. As long as the headlines are inundating us with catastrophic like news the markets will reflect that. The stock market is always forward looking. It tries to price in the future. In times like this it will overreact, in both directions. As the news is … [Read more...]

Whoa! That was the fastest 10% broader market dip in history. Volatility hasn't spiked this high since the financial crisis in 2008. And bonds! What's going on there? The 10 Year is now under 1%, yielding .767%! It was almost 2% at the beginning of the year. It's dropping faster than a cruise line ticket to anywhere. And oil! It's rolling over like a loose tumbleweed down Main Street in West Texas. That bubbling crude wouldn't buy a hillbilly a Beverly Hills parking spot at these prices. At … [Read more...]

I'm as stunned as everyone is. I would never have thought we could be down 3,500 Dow points from last week. 1,000 points, yes. 3,500 points, no way. In fact, I did forecast a steep and deep drop of 1,000 points during late February and wrote this two weeks ago: “Short term, the model shows another dip soon. Before the end of the month the Dow Jones Industrial Average could begin another 1,000 point retracement (price adjustment) to the ascending pink line support, just like it did two weeks ag … [Read more...]