3/1/2020 Feb might extend repo op. and/or lower rate on Mar 17-18 meeting

Amid last a few days' eye popping slide down 7.41% in 9 days, Fed chief signals likely rate cut next month. COVID-19 will likely cut off the global supply chain and GDP will be cut off for sure.

There are more discussion now how economy will be hit under different scenarios. Trump called for Feb to intervene like a leader yesterday.  Washington Post reported that Trump administration evaluates targeted tax cut and other measures to tackle coronavirus fall out on 3:14 pm  EST 2/28/20. Soon enough SPY bounced back:

Negative news came out on Saturday and Sunday include first Coronavirus death in US, and more confirmed cases from South Korea, Iran and Italy. People are getting panic and started to stock food and toilet papers.

Source: WHO Coronavirus situation report - 40.

So, what will be stock market react to those chaos and mounting cases next week?

Again, watch out where the DXY, GLD and TLT. Those will give out signals if money keeps pump into US, whether Gold has been covered enough, and yield starts to ease.

Key take away on 3/1/2020: Feb rate cutting has mostly been priced in based on last 30 minutes soaring on 2/28/20. Market is in panic mode now and will keep this sliding momentum for a while (who knows how long). Repo operation change and new vaccine progress will be positive change from the monetary and media end. Be on alert to key data to be released next week: Next Thursday 3/5/2020 factory order and Friday 3/6/2020 job reports.

Volatility will increase, that's for sure.

Keep calm. Stay live. Deploy strategy. (Repeat)

Disclaimer: This website , blog and the information contained herein are not intended to be a source of advice or finance analysis with respect to the material presented, and the information and/or documents contained in this website/blog do not constitute investment advice. Please use at your own risk.


Contact Us

Oakville, Ontario, Canada

Tel. 289-813-5018

© 2020 by OFP2C.