Note: All charts now updated for this mornings open.
The following is a report we generate regularly for our RIAPRO Subscribers. You can try our service RISK-FREE for 30-Days.
Headlines from the past four-days:
Dow sinks 2,000 points in worst day since 2008, S&P 500 drops more than 7%
Dow rallies more than 1,100 points in a wild session, halves losses from Monday’s sell-off
Dow drops 1,400 points and tumbles into a bear market, down 20% from last month’s record close
Stocks extend losses following 15-minute ‘circuit breaker’ halt, S&P 500 drops 8%
It has, been a heck of a couple of weeks for the market with daily point swings running 1000, or more, points in either direction.
However, given Tuesday’s huge rally, it seemed as if the market’s recent rout might be over with the bulls set to take charge? Unfortunately, as with the two-previous 1000+ point rallies, the bulls couldn’t maintain their stand.
But with the markets having now triggered a 20% decline, ending the “bull market,” according to the media, is all “hope” now lost? Is the market now like an “Oriental Rug Factory” where “Everything Must Go?”
It certainly feels that way at the moment.
“Virus fears” have run amok with major sporting events playing to empty crowds, the Houston Live Stock Show & Rodeo was canceled, along with Coachella, and numerous conferences and conventions from Las Vegas to New York. If that wasn’t bad enough, Saudi Arabia thought they would start an “oil price”war just to make things interesting.
What is happening now, and what we have warned about for some time, is that markets needed to reprice valuations for a reduction in economic growth and earnings.
It has just been a much quicker, and brutal, event than even we anticipated.
The questions to answer now are:
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