Monday, February 17, 2020

Black swan - Corona Virus - FULL STOP

The .382 retrace from the 3385 high on the S&P 500 back to the 2009 low @ 666 is precisely 2346, the spike low from Christmas, 2018.




What's your favorite analogue?  Northy likes 1937.  I like 2008, a beautiful shape for a disaster.  From 3385 we get a head & shoulders with 2346 as the neckline, followed by a violent collapse to 1000 on Election Day, 2020, and subsequent dives much lower.


S&P 500 daily with 2008 tape overlay

Vertical pink lines are Fed meetings.  They will do all they can, but it cannot possibly be enough.


7 comments:

Bryan Franco said...

The treasury can always buy S&P futures or sell VIX futures. Indefinitely. Or until it exacerbates wealth inequality too much. Not sure where the tipping point for wealth inequality lies. I would love opinions on that matter though.

T.Berry said...
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T.Berry said...
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T.Berry said...

i believe the corona virus fears are way overblown. why? the lockdown affects a small part of china (99.99% of all cases are there), every single past contagious disease has been contained 100%, the public tends to overreact to health threats & any economic impact will be short lived (demand just gets pushed back a little). the virus has been known now for over a month and the market continues hitting record highs. markets are efficient and always have been forward looking and are basically confirming the above. i believe when news hits of containment (and it will), the ensuing rally could be epic.

naz hitting 10k & dow 29k soon. naz could go as 11k+ this year

still no reason to sell this market and definitely no reason to get rid of siri anytime soon, she’ll be fine : )

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