On the open the market opened and hit circuit breaker limits of 7% within 0.01 second. This shut down the market for 15 minutes, which gave me time to get a cup of coffee and listen to mayors and governors talk about shutting down cities.
After the circuit breakers ended we fell to close to the second -13% breaker before bouncing. This appears it was forced liquidation and panic on the open. The SPX bounced from 2400 to 2560 before turning over and falling again.
The rest of the day we got a constant trickle of cities announcing they were shutting things down, and the market kept sliding lower again.
What amazed me is that San Francisco announced that they were imposing a curfew. The mayor must has something against this particular virus, because she (London Breed) doesn't seem too worried about cholera or giardia by legally allowing homeless to defecate on the street. Plastic straws are illegal because everyone knows how dangerous straws are, but AIDS infected needles are allowed to be discarded on kid's playgrounds.
Even the Medieval disease of typhus is making a comeback for one last showing because of the sanitary conditions in San Fransico, one of my favorite cities that I will never go to again – ever. I will miss Yoshi's jazz bar. You know things are messed up when rock groups like Metallica move out of the city.
What was very concerning is hearing Las Vegas is shutting down. Canada is closing its boarders. The only thing we don't hear about anymore is the resistance to the southern wall with Mexico.
At 2:45 central time President Trump held another press conference that likely was the cause of the markets closing on the low. In the past the President has asserted that the virus was not bad, and the media was making it out to be a bigger deal than it was.
Yesterday President Trump's took a much more somber tone. He was no longer blaming democrats and the media, but was sounding the alarm of seriousness himself. The President also was vague but brought up the possibility that this could last until August, and the markets did NOT like this. We have been sold on this being a 4-6 week inconvenience, and now it is a new way of life. The longer the conference went on the more the market fell going into the close.
SPX closed lower 11.98%
Dow closed lower 12.93%
AAPL closed lower by 35.76 at 242.21 (-12.8%)