This week, over the span of just 24 hours, we saw a rate cut-driven market rally of nearly 1,170 points plummet down 900 points. The market moved back and forth a total of 3,253 points in just the first three days of the week. Treasury yields sank to record lows as these wild swings continue. […]Read More

Asian markets closed uniformly in the red this morning and now European markets are following in the same direction. With so much uncertainty about the global spread of the coronavirus and the fact that its spread in Europe and the U.S. is accelerating, short term investors are battening down the hatches ahead of the weekend. […]Read More

Investors have stopped backing riskier assets once again as they lost their optimistic side regarding the coordinated action of central banks around the globe. This is despite the fact that the Dow Jones scored more than 1000 points yesterday and closed with a gain of 4.53%. The S&P 500 index increased by 4.22% and the […]Read More

U.S. stocks are in for a soft open following yesterday’s huge rally after global travel restrictions grow. The disruption in travel and trade is intensifying and global equities will likely struggle to keep the fiscal and monetary stimulus rally going as sentiment continues to crumble. Traders will pay close attention to the U.S. weekly jobless […]Read More

Despite the specter of coronavirus lurking over the world’s economy, all appears well with the world, judging by Wall Street’s overnight performance. China’s rate of new infections has plunged, even as coronavirus makes its presence felt in the far-flung corners of the globe. The Bank of Canada followed the Federal Reserve’s lead, announcing a 50-basis […]Read More

Early Tuesday morning, I put out an update to our members of ElliottWaveTrader.net that noted that the 3135 region as the top of our resistance region, which can point us lower once struck. Now, we all know that the “surprise” rate cut by the Fed should have been viewed as a positive to the market. […]Read More

After Tuesday primaries, Biden now seen to take over Democratic lead, somewhat calming investors amid the virus upheaval Emergency Fed cut disappointed; Powell warning only exacerbated fears U.S. yields extend a plunge below 1.00 for the first time in history Key Events Just one day after the emergency Fed rate cut did nothing for markets, […]Read More

Markets Other than to sell USD, the markets will continue to struggle for direction as investors don’t seem to think the Fed knows more about the implications of the virus than they do. So at this early stage of the policy game, I think what we’re seeing is an unwinding of defensive hedges rather than […]Read More

It’s unclear if yesterday’s emergency 50-basis-point cut in interest rates by the Federal Reserve will help immunize the US economy against coronavirus-related blowback. Meanwhile, a rise in reported cases of Covid-19 on a global basis remains the baseline forecast, based on today’s update of CapitalSpectator.com’s modeling (see today’s revised outlook below). Cleveland Federal Reserve President […]Read More

Overview: The G7 delivered up a nothing burger that was shortly followed by a 50 bp Fed cut. The equity market seemed to enjoy it briefly and extended Monday’s dramatic gains, before falling out of bed. The S&P 500 lost about 2.2%, while the Dow Industrial slumped 3%, but shortly after the markets closed, equities […]Read More