1st step above the Izzy Bottom now in place. Should it break, watch out. Staying long here. I expect ATHs soon.
Keyword being 'may'. We already took out the HOD from yesterday, so who knows. I do favour a new HOD from here myself though.
Many people were looking for a retest of the lows and as i said those are a ways off . I pointed out the massive counter strength in oils even as oil was at 18 yr lows. They were telegraphing todays Trump bs
Define soon. 3 weeks? 3 months? A recovery to ATHs need a few things to happen. May need only one of them: 1) The world economy needs to start moving again, i.e., this shutdown needs to end or at least a clearly defined future date for when that will happen and at what rate. Too much uncertainty now, IMO... 2) A mutual agreement by all participants that the stock market and the world economy is completely decoupled, i.e., no relationship between pricings and fundamentals and thus a new bubble on the way. 3) The FED starting to buy stocks themselves.
This week I had a load from Laredo to Salt Lake City that took me through the Permian basin. I saw a lot of flares in this area of Texas and New Mexico as well as Friday still decent evening local traffic. I also saw lots of oil field company yards full of equipment. A lot of hands on jobs are in trouble as well as jobs of those in supporting industries. In most of the big, expensive coastal states, it is said many homeowners are just one month from missing a mortgage payment if they lose their job(s). I understand the risks to our economy but believe the very smart people in Wall Street, the Fed (Same thing, nowadays?), motivated President, and a spend happy Congress realize this as well. The question is, is the Stimulus pipe big enough to get all that is needed for our economy in time to avoid an implosion? Will be looking at commodity prices and policy answers for addressing rapidly mounting job losses as a clue.
Hey, he's a team player, if he has to bomb Iran to help his buddies sell their oil... 6.6 million people just lost their jobs ***in a week*** and we're going up... I'm in my safe and comfy in my ivory tower, but I really don't understand why the peasants don't riot and burn everything to the ground...