These two events sent MINIS down in the night session, oil down 31%, and panic bond buying to Limit Up levels. The 10-year got down to 0.31%. Panic feeds on itself like the first lemming jumping off a cliff.
This caused a LIMIT DOWN pre-market open of the Minis falling 145 points, or 5% (the night limit). Once the market opens during normal hours, the limit is expanded to 7% (-225). It took us only a few minutes to hit that. We shut down for 15 minutes (as seen in the chart above).
News eventually came out that President Trump was going to talk in the evening about cutting taxes to help with the losses from the virus. At the same time Bernie Sanders was on television talking about raising taxes to pay for everyone to get the Coronavirus test free. The problem is I don't want to pay for the test for myself unless I am exhibiting symptoms.
This optimistic news allowed the Minis and SPX cash to bounce from the lows of 2715 to 2863.89 in cash levels (-109). This is a huge bounce that fell apart again as panic once again set in. Various media networks show the cruise ship with potential virus patients pulling into port for half the day. We were once again getting the slow drip of negative news with updated patient numbers and news cities under quarantine. This did NOT help the markets stay at the day's highs, and we eventfully settled lower with the Minis down -200 most of the day.
SPX closed down -7.60%
Dow closed down -7.79%
AAPL closed down 22.86 at 266.17 (-7.9%)
VIX closed at 54.46 (up 12.52)
There are many, many thousands of people with the virus. Deal with it. There are just no tests, so no one is being tested. If not tested, you don't have it, right? If my parents didn's see a report card, I didn't get a D in art.
Doctors are saying don't go to the physicians with shortness of breadth, cough and fever because they can't test you. I guess we go to witch doctors instead. By the way, that is the symptoms of the virus. We are hearing about 550 cases right now. There are probably 5,000. My grandkids could have it right now from school, but they are not being tested by their doctor. Unless they start to cough up blood or their temperature gets above 104, I am not worried.
Making matters worse, all we are hearing are conflicting news about the virus, and told that there is nothing to worry about. Then way are so many people worried, and so many places under quarantine? What we need is someone other than politicians getting on TV explaining FACTS.
What is scarier than the virus is people's panic. What is scarier than that? Our dependency on China for our supply chain of medication, antibiotics, etc. How is a potential enemy the only ones that make out antibiotics?