Beware The “Bull Trap”?
The FED’s emergency rate cut tonight has created more FEAR and PANIC globally and is now sending the global markets into a tail spin! Again, the FED’s inopportune timing of a rate cut has caused global markets to sell off tonight to limit down of ----5.00 % on the YM Futures. "The FED has spent all of its bullets saying it will increase its holdings of U.S. government bonds by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion” . Will these moves lower the cost of longer-term debt borrowing and support the housing market as it did during and after the 2008 financial crisis?
As Treasury stress spreads swaps liquidity slumps. Liquidity continued to worsen in US dollar interest rate swap markets. Three large buy-side swaps users reported pricing ‘dislocations’, widening spreads and a dwindling number of dealers willing to provide quotes. Net liquidity has dried up in instruments as it had during the 2008 financial crisis.
The FED has just created a very big problem for all of us.
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https://www.zerohedge.com/markets/live-feds-powell-holds-emergency-phone-conference-explaining-why-nothing-fked-here
The SPX is in Impulsive Wave 3 down, the major trend is down. Oversold conditions are at record levels, but the historical oscillators that are being used are not adequate to inform the investors/traders when a bottom is in.
This cut came at the worst time Couldn’t the FED hold off until its next meeting this week?
The Apple (NASDAQ:AAPL) stores nationwide are closing ! That’s huge!! I see more stores closing going forward this week..
Everybody is starting to worry. The self-fulling prophecy of a stock market crash is coming true.
These are catalysts for the underlying market conditions to prime it for a crash even when not one single event is triggering it.
“The World Is Hit With A $12 Trillion Dollar Margin Call Last week the world got a dollar margin call, one which according to JPM is now $12 trillion, 60% of US GDP, and roughly double where it was during the financial crisis”.
https://www.zerohedge.com/markets/pray-powell-world-hit-12-trillion-dollar-margin-call
Is this a true correction or the start of something more significant?.
According to the “corporate media” most of virus infections are in five major areas: NYC, Boston, Washington D.C., San Francisco / Bay Area and Seattle
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There is still not enough FEAR in the markets to call a bottom.