dChan
Anonymous ID: bcade5 March 2, 2020, 1:43 p.m. No.8301927   🗄️.is đź”—kun   >>1994 >>2030 >>2178

Market Report-Highest Point gain ever

Treasury yields came off record lows on Monday as stocks surged on expectations for major central banks to prop up financial conditions in response to the COVID-19 outbreak, following the worst week for U.S. equities since the 2008 financial crisis. The BoJ bought a bucketload of ETFs overnight,and lifted Japanese stocks(they own about 60% of the entire market). The PBOC's National Team performed miracles lifting Chinese stocks amid collapsing PMIs. The IMF/World Bank promised "help" and everyone is now anticipating the G7 - because they've always been so great at agreeing on a unifying action!

And all of that (along with Jay Powell's brief statement on Friday and Kudlow/Mnuchin's calls for an emergency rate cut) was enough to lift US stocks, but a ton of worsening US virus headlines sparked some weakness as the day wore on, only to be rescued by Trump's optimistic tone on vaccines and treatments… That is 1850 points off the overnight lows.

Today's stunning 1293 point gain by the Dow was by far the greatest point gain ever!

Notably, S&P and Nasdaq broke above critical technical levels in the last few panic-buying minutes. You had you're chance to exit shorts on the break fo the nceckline today. If you were wating for it ro hit the support lines…you missed the boat. The market priced in 75bps of cuts in March earlier today, but slipped back to 50bps as stocks rallied. Chinese markets were aggressively bid last night by someone-see last nights posted market report, they intervened but just didn't tell anyojne about it…yet. This was The Dow's biggest percentage gain since March 2009 (QE1 announced)…AND bigger than the last time the PPT saved the world in Dec 2018 (Dow +1086 points that day).

Treasury's did not buy this rally initially bought caught up to it towards the close-Cap#3. The yield curve was done no favors today either-this will only make the situations at Primary Dealer's even worse-this takes time and does not unfold over a few day's. The shorts who waited certainly covered in the last few minutes(blue circle Cap#2). The big banks bounced after their bloodbath. This was after a fistful of upgrades and even after those they did not do it much-relative to the market advance you just saw.

 

Disappointing Chinese economic data over the weekend highlighted the potential for supply-chain disruptions among global manufacturers, as workers trickle back onto factory floors and businesses look to resume operations. The Chinese official purchasing managers’ manufacturing index and the equivalent Caixin PMI index both reported their lowest reading since the 2008 financial crisis.

Contrasting that was U.S. data, the Institute for Supply Management said its manufacturing index dipped to 50.1% last month from 50.9%. Producers reported supply bottlenecks linked to the coronavirus, which has hampered their ability to get parts. Any reading below 50% indicates deteriorating conditions.

 

The FOMC will cut rates at next meeting and a 100% east is baked into and all the way to the December meeting. Cap#5. They are screwed and only the late session rise saved the bacon for them. This is another thing that will eventually screw them.

 

This is the current schedule for Treasury Auctions:

https://www.treasury.gov/resource-center/data-chart-center/quarterly-refunding/Documents/auctions.pdf

https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

https://finance.yahoo.com/quote/%5EDJI

https://www.marketwatch.com/investing/bond/tmubmusd10y

https://www.zerohedge.com/markets/stocks-soar-hopes-intervention-bond-yields-crash-record-lows

use the zh article as a basis-they don't write much anyway-and add in observations and facts.