Friends
Did we mention that there might be some volatility in the markets for a while? Today’s price action in stocks was once again breathtaking. A nearly 1000 point Dow gain in early trading was totally erased by midday. Then once again in the afternoon stock prices rallied. As we have explained, this type of volatility has occurred each time we’ve had a sizable disruption since the financial crisis of 2008-2009. The initial downturns are followed by massive volatility.
Today’s rally might have been a reaction to hope that there will be a fiscal response to the economic deterioration caused by Covid-19, but more likely than not today’s move might simply be another counter trend move (a rally vs the pullbacks that we have been experiencing).
Whatever the reason by the close the Dow Jones Industrial Average was up 1,167 points to finish the day at 25,018. The S&P 500 was up 135 points to close at 2,882. Gold was down $28 to trade at $1,646 per ounce, while oil was up $3.41 to trade at $34.54 per barrel WTI.
It’s amazing that we can see a 7% move one day followed by a 5% move the next. Thank goodness the latter was to the upside. As we mentioned, while this Covid-19 crisis is unfolding, we’ll continue to try to update you as often as is necessary. Stay tuned and stay calm.
Have a nice evening everyone.
