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Market Update Wednesday 03/25/20

Yesterday’s monster rally continued at the open of trading on Wall Street, but the SkyNet SellBots quickly reversed the action, sending stocks sharply lower. Not to be outdone, the BuyBots countered and ignited another rally. A selloff in the last hour yielded a mixed close. The DJIA gained 249 points (2.4%) but NASDAQ dropped 34 points (0.5%). US Treasury paper gained more ground.

Stay tuned as the battle of the SkyNet StockBots continues.

Market Update Tuesday 03/24/20

The Federal Reserve and DC Swamp politicians finally threw enough stimulus, subsidies and spending at the financial markets, $8,000,000,000,000 at last count, to get the undivided attention of the SkyNet BuyBots.

Dow posts 2,112 point gain biggest ever

It was a rally of epic proportion, the first solid reaction to the Bear Market that started six weeks ago. The DJIA soared 2,112 points (11.3%) and the NASDAQ jumped 557 points (8.1%). US Treasury paper and gold soared again.

Stay tuned as the battle of the SkyNet StockBots continues.

Market Update Monday 03/23/20

To quote the infamous yogi (Berra that is), “It’s deja vu all over again:” another Manic Monday. The SkyNet StockBots battled it out as stocks zigged and zagged their way into another solid down day.

The US Federal Reserve threw even the kitchen sink into today’s efforts to stem the bloodbath in US stocks, to little avail.

Federal Reserve announces extensive new measures to support the economy

The DJIA dropped 582 points (3.0%) and the NASDAQ outperformed, falling only 19 points (0.3%). US Treasury paper and gold soared again while oil plunged.

Stay tuned as the battle of the SkyNet StockBots continues.

03/28/20 – Jeff Booth: Coronavirus has shown us we were living in an economic fairy tale

You and your neighbor, let’s call him Bob, choose two very different paths. The year is 2001. You choose to live within your means, only paying for what you can in cash and never taking a loan. He, instead, takes a $1-million loan to fuel lavish spending. He builds a new house, hires gardeners, buys new furniture and a big-screen TV. To you and all of your neighbors, looking in from the outside, Bob is very wealthy. Read More.

Market Update Friday 03/20/20

Following yesterday’s relatively calm trading, the SkyNet SellBots kicked things back in gear with another dramatic sell-off. A brief morning rally quickly turned into another waterfall decline. A last hour rally trimmed the day’s damage just a bit.

Dow ends down over 900 points in wild action, as stocks book worst week since 2008.

The DJIA dropped 913 points (4.6%) and the NASDAQ sank 271 points (3.8%). US Treasury paper and gold gained again while oil plunged.

Stay tuned as the battle of the SkyNet StockBots continues.

Market Update Thursday 03/19/20

US stocks traded in a relatively narrow range for the first time in weeks. The SkyNet SellBots took control in the overnight futures trading, sending US stocks lower at the open of trading on Wall Street. From there, stocks zigged and zagged their way higher into the close. The DJIA recovered 188 points (0.9%) and the NASDAQ jumped 160 points (2.3%).

Stay tuned as the battle of the SkyNet StockBots continues.

Market Update Wednesday 03/18/20

It was another devastating day on Wall Street. US stocks mini-crashed again as the SkyNet SellBots took control in the overnight futures trading, sending US stocks sharply lower at the open of trading on Wall Street and triggering circuit breakers and a trading halt. The SellBots continued the unrelenting pressure and only a last hour rebound provided a minor bounce into the close. The DJIA dropped yet another 1,338 points (6.3%) and the NASDAQ tanked 345 points (4.7%). US Treasury paper and gold fell sharply again.

Stay tuned as the battle of the SkyNet StockBots continues.

03/25/20 – Michael Lebowitz: Why QE Is Not Working

By formally announcing quantitative easing (QE) infinity on March 23, 2020, the Federal Reserve (Fed) is using its entire arsenal of monetary stimulus. Unlimited purchases of Treasury securities and mortgage-backed securities for an indefinite period is far more dramatic than anything they did in 2008. Read More

Market Update Tuesday 03/17/20

After yesterday’s historic plunge, the SkyNet BuyBots took control in the overnight futures trading, sending US stocks sharply higher at the open of trading on Wall Street. But as soon as the bulls breathed a sigh of relief, the SellBots stepped right in and erased all of the early gains. But Donald Trump & Co. again saved the day by announcing even more financial and monetary stimulus (i.e. bailouts) and the BuyBots jumped all over that news, sending stocks sharply higher into the close.

New York Fed pledges to offer $1 trillion a day in overnight repo loans

Fed to lend against stocks and bonds in bid to stabilise markets

The DJIA recovered 1,049 points (5.2%) and the NASDAQ rebounded 430 points (6.2%). US Treasury paper fell sharply. Gold finally showed some strength, jumping $47.00.

Stay tuned as the battle of the SkyNet StockBots continues.