February 23, 2020
Weekly Market Outlook
By Keith Schneider
The Corona virus continues to run amuck and is creating havoc on human lives and the markets. So rather than focus on opinions about whether or not it will become a worldwide pandemic, let’s look at the immediate impact. First and foremost, Apple was hit hard this week and ended down over -2.5% on Friday and is now off -5% from its recent highs. Considering Apple is the biggest component in our key benchmark indexes, it’s not something to dismiss.
China’s central bank has pumped in almost $500 billion dollars of liquidity to try to offset the impact of the virus. The question is will this huge injection will be enough to get people out of isolation and maybe risk their lives to go out and buy products (like a new iPhone). The pressure worldwide on rates trickled down to US long bonds which hit all-time lows in yield. Meanwhile Gold, hit seven-year highs and Gold Miners are looking to break out of a 7-year basing pattern. Volatility jumped and soft commodities (helped by a spreading locust) look poised to join the rally in metals. Switzerland stock market firmed, not surprising considering the flight to gold.
This week’s highlights are:
Best Wishes for your trading
Keith Schneider
CEO -Marketgauge.com
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