March 4, 2020
Another 1,000 Points
Another 1,000 Point day. It’s a Tie.
Today was the 4th 1,000+ point day move in the Dow since last Monday. Just 8 trading days. So, 1,000 market move every other day – on average. It’s a tie; 2 down, 2 up. Unprecedented volatility. Simply haven’t seen this before.
You know my policy. Send out a Market Update on big down days (2 or more major stock market indexes down >3%). But, I just couldn’t resist sending a much more positive Market Update today. It’s more fun! What a snap-back from yesterday’s ugly market reversal sell-off. Here’s the scoreboard:
Today’s 1,173 point gain was the 2nd best ever, just behind Monday’s jump. Can’t say it enough; tremendous volatility.
So, the 1,000+ daily point move is now a tie. This week’s two 1,000+ up-days have done much to repair the fast and steep fall down created by last week’s two 1,000+ down days. The Dow formed a sharp V-shaped price formation, getting back to where is closed last Tuesday. So much fear and uncertainty over those days, just to have the market near where it was when all the selling began. Today was the the most bullish move yet in this correction mode. However, volume was a little light to be ideal. Again, this reversed yesterday’s extremely bearish move down 800 points after being up 300 on the news of the Fed’s announcement of an unexpected 50bp interest rate cut.
Although acting strangely, the market got what it asked for. The market has wanted and highly expected an interest rate cut by the Federal Reserve. When Chairman J. Powell hinted of that Monday, the market soared – up the most points ever. When Powell delivered yesterday early AM, the market cheered for a minute, and then sold off hard and heavy. Today’s action appears as if more rational heads prevailed.
Expect more volatility. The market price swings will continue. I expect at the end of the experience, the score will remain tied. Better yet, as more rational heads prevail, the up 1,000+ point day moves should outnumber the down.
Hope this is helpful.
Thank you for your continued trust and confidence. I remain vigilant as I manage and oversee your investment account.
John