In 4 or so decades of closely watching stocks, I have never seen this degree of erratic and dramatic whipsawing. Nothing close.
We know the markets dislike uncertainty....this is uncertainty to the MAX! ;)
I don't know what it is like in your country but this what is happening here
Let me list why our country is in turmoil including equity markets
1st we had virus head lines on the TV every nite for I don't know how long
Then a member of our leader Trudeau's family, tested positive for the virus. Trudeau went into quarantine
Then we closed our borders to all but USA citizens
That was a bit of a wake up call that our leaders were taking the virus some what seriously
However, most of the people on the street did not change their routine
One thing that did change was the food shelves suddenly went empty from last friday [pay day] until Monday the shelves were bare. It started earlier than Fri in the larger cities and by Monday had swept down to every small town in Ontario. Your corner variety store was the last resort to buy milk and bread on Monday
Then the resturants closed
That was when the people really hunkered down
Last nite, before resturants closed, a popular eating place had two families all evening
My niece got word today her two resturants in Toronto will be completely closed. She laid off over 100 employees today and although management is still working, she may be next to go, as all management is not needed
My grand son's girl friend works in a vet hospital
She got sent home today at noon
I have a doctor's appointment this Thursday and cannot confirm if I should show up or not. No return phone call, as of yet
Every farm supplier has sent e-mails requesting phone calls in place of a person to person contact. All prices, for inputs are by e-mail. which was not done in the past as the quotes could easily leak out to the competition
If you have travelled outside Canada recently you are asked to self quarantine, which my son and better 1/2 are currently doing since Saturday
The whole world in this part of Canada has been turned upside down, in maybe a week or more
Some are looking seriously at what they see today, on the street, the Fed, credit issues, bailouts, the list goes on
That market has had it's world turned upside down since ??? when. Much longer than the person on the street has seen in one week
People are guessing the lock down will last for 8 weeks
How many will be laid off in 8 weeks. How many will have jobs waiting at the end of 8 weeks
The guys at my sons fab shop want to see my son physically every day. They are looking for security that the head honcho is still functioning
We have two soda bottlers in Ontario. One has shut down due to a positive test. Our beverage shelves have 1/2 the supply
How many trader's remember the last crisis
Nobody knows what tomorrow will bring, but 20% unemployment is depression
Some people are looking at the last depression charts
Thanks for the good comments
This is all that matters:
Crude is below $21 at the moment, UNL got to 62c, now above 64c WOW!
From the article above:
The markets can’t seem to catch a break, with the Dow dropping below 20,000 points for the first time since 2017 as the coronavirus crisis continues to fuel a massive stock selloff despite governments across the world scrambling to inject some relief into the global economy. Oil, for its part, is also feeling the sting, with WTI falling to $23.27 and Brent falling to $27.82.
With one of the most volatile trading weeks on record since the 1929 Great Depression, money managers are increasingly calling for a full closure of the stock markets. Yesterday, the Philippines became the first country to shut down its stock market, but others could soon follow. Markets in the United States and the UK have already seen a number of 'circuit breaker' halts in the past couple of weeks.
The S&P 500 is currently down by over 6 percent, resuming a sell-off that's shaved 29 percent from its record highs. The Dow has taken the biggest hit, however, falling by more than 7 percent since trading began this morning.
Markets rallied 6 percent Tuesday after the Trump management proposed injecting as much as $1 trillion into the economy through a potential stimulus package while the Federal Reserve dusted off crisis-era programs to keep financial markets afloat, though the rally was short-lived.
Treasuries remained relatively unfazed after the most significant yield jump since 1982 though municipal bonds continued the most extensive loss since 1987 as markets prepared for a possible wave of spending.
This is the speediest plunge into bear territory in the history of stock markets. Fear is now officially driving markets.