Bull Market officially over!! Year heading negative.

[Breccia]

I was predicting a LOT worse. And so far Boeing is up for the day.

Ah. I wonder if the Boeing thing is because GE is cutting their airforce workforce? Stocks seem to rise when people get fired.

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But how many do they have left?

I'm going to keep using the term "blew their cooldowns" until the boss enrages.

[Poopymonster]

I'm going to keep using the term "blew their cooldowns" until the boss enrages.

This time he's using more than $130,000.

[Rukh]

We're back to 2016. Stock market time machine!

[Breccia]

We're back to 2016. Stock market time machine!

At time of writing, DOWn to 18,279, DOWn nearly 900.

That's July 2016. For now, at least, Trump has lost everything for months before he almost won the popular vote.

[Thekri]

Ah. I wonder if the Boeing thing is because GE is cutting their airforce workforce? Stocks seem to rise when people get fired.

Not directly, but it is part of it. The big reason GE Aviation cut 10% of their North American workforce is actually the airlines stopping flying. They typically conduct services based on flight hours, and obviously not many planes hit their forecasts flight hours this month, because the skies are largely empty. Combine this with airlines suspending orders to shore up their cash positions, Airbus shutting down over the coronavirus, the ongoing issues at Boeing, and last, but not least, the fact the supply chains are so broken right now they couldn't make engines if they wanted too.

That is why this virus is so damaging to the economy, it hits companies from every angle at once. GE Aviation is in desperation mode, trying to save cash and jobs, so they don't go under in the short term. In addition to the 10% they laid off, they suspended another 50% of their work force.

[Zan15]

At time of writing, DOWn to 18,279, DOWn nearly 900.

That's July 2016. For now, at least, Trump has lost everything for months before he almost won the popular vote.

Trump did promise to undo everything Obama.

real horror is he might even get to undo Obama's 184% stock market gains......

[Breccia]

Trump did promise to undo everything Obama.

real horror is he might even get to undo Obama's 184% stock market gains......

Um...let's all hope that's not the case. We've discussed the "bottom" on this thread, but nobody's saying the 8,000 or so at the bottom of W's crash.

...yet.

Also, looks like it bounced a bit, only DOWn 360 or so.

[Zan15]

On a lighter note I added several stocks to my conditional buy list.

Apple under $200. (probably not realistic)

Amazon under $1,650. It was at $1,641 on March 16.

Google under $900. (probably not realistic either)

.

did you get in on msft this morning? Low 132.53

Apple is getting closer too Low 212.63

amazon will never hit 1650 till the panic is over and no one has a job left to buy from them.
They are the only ones outside of Walmart still selling out

Google almost below 1000 for first time since what 2017?

[Omega10]

Trump did promise to undo everything Obama.

real horror is he might even get to undo Obama's 184% stock market gains......

In March of 2009 it dropped close to the 7k mark. I can definitely see it dropping to 15k, not sure about 12k, but I would say that anything below 10k would be a stretch. Then again, the Fed possibly just delayed the upcoming drops rather than preventing them.

The Trump administration is calling for a greater emphasis on supporting the economy, especially US corporations. It is possible that the US will pump enough money into US corporations so that the stock market will stabilize at a much higher number, and even start to rise.

It should also be noted that it was not that long ago that no one thought it would go below 21k or even 20k. Now it may be a while before it gets that high.

[Rasulis]

did you get in on msft this morning? Low 132.53

Apple is getting closer too Low 212.63

amazon will never hit 1650 till the panic is over and no one has a job left to buy from them.
They are the only ones outside of Walmart still selling out

Google almost below 1000 for first time since what 2017?

I did get 150 shares of Microsoft at $134.60. They are already back to almost $139 now. Apple is back up to over $220. Still looking for something else to buy. Maybe FB if it goes into the low 130ish. Not for me, but if people want to bet big, they buy Boeing. It has lost 80% of its value.

I am looking forward to the end of April when the big companies are supposed to submit their quarterly reports. That will either boost confidence or totally spook the market.

[alexw]

If you read my last, I dunno, 20 posts on this very thread, you'll avoid every single piece of advice I give.

Speaking of which, things are looking good for Wal-Mart. They're raising their minimum wage at their warehouses, probably to compensate for the massive demand. Incidentally, Wal-Mart's stock price is nearly even over the last month. In context, that's impressive.

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Get ready for a wild ride.

Fed announces drastic expansion of economic rescue efforts



DOW futures just snapped in the other direction. They are now positive.

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Reuters has more on the Fed announcement.



They refer to it as "the bazooka" a term I'm pretty sure I've seen before. The Fed is out of cooldowns.

By the way, I want to call attention to the bolded above. No further comment is needed.

The problem is these are loans. That will boost the stockmarket but it won't stop the mass wave of bankruptcies and liquidations that are coming. The threatened companies need income, not loans.

[Breccia]

The problem is these are loans. That will boost the stockmarket but it won't stop the mass wave of bankruptcies and liquidations that are coming. The threatened companies need income, not loans.

Yeah...but, it's better than nothing. I don't believe the Fed has the authority to just give away money, do they?

[Zan15]

Um...let's all hope that's not the case. We've discussed the "bottom" on this thread, but nobody's saying the 8,000 or so at the bottom of W's crash.

...yet.

Also, looks like it bounced a bit, only DOWn 360 or so.

I want to pull the trigger here since it appears to be some consolidation and holding of the line but I am worried about the "everyday" investor panicking when the unemployment numbers come out.
we might get another good weeks worth of declines when that number hits the general population

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Yeah...but, it's better than nothing. I don't believe the Fed has the authority to just give away money, do they?

They don't have the money to give away.

All their "injecting" is buying "assets" and then selling later. Unfortunately all the profits they turn each year is turned over to the US treasury so they have no money sitting around.

They can charge zero interest. They might even be able to go negative for a while. But they just don't have trillions to give away without the treasury giving it to them

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The problem is these are loans. That will boost the stockmarket but it won't stop the mass wave of bankruptcies and liquidations that are coming. The threatened companies need income, not loans.

They do have the power to suspend all interest and principal payments indefinitely.
So they could in theory loan the money and hope to get it back at a much much later date.

But it won't help the small business as they won't be able to absorb that cost later on, on top of normal business cost.

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I did get 150 shares of Microsoft at $134.60. They are already back to almost $139 now. Apple is back up to over $220. Still looking for something else to buy. Maybe FB if it goes into the low 130ish. Not for me, but if people want to bet big, they buy Boeing. It has lost 80% of its value.

I am looking forward to the end of April when the big companies are supposed to submit their quarterly reports. That will either boost confidence or totally spook the market.

More than likely I expect them to suspend issuance of their quarterly reports for weeks maybe even a month with approval from the SEC because of how fast this hit.

Would be smart of the SEC to grant these wavers, but they will have to report eventually.



Grats I almost brought some this morning but I still have the pang that we have not seen bottom by at least another 5-10%

[Breccia]

I've seen worse days. It never broke even, but then, it never hit -1000 either.

[Zan15]

If you read my last, I dunno, 20 posts on this very thread, you'll avoid every single piece of advice I give.

Speaking of which, things are looking good for Wal-Mart. They're raising their minimum wage at their warehouses, probably to compensate for the massive demand. Incidentally, Wal-Mart's stock price is nearly even over the last month. In context, that's impressive.

.

As long as the supply chain keeps rolling Walmart, Grocery chains, amazon, anything that have a huge delivery/online % of revenue will probably stay reasonably afloat..... .till the layoffs keep going.
They will certainly out perform the market, but even the blind could see that coming.



There is still another week or so of "normal" payroll coming in for everyone. So consumers are still spending.
Hell I ordered 3 times already in the past week from Walmart. first time in 2 years outside of tires....


by April 1st, no joke, that is when people will start to realize they might want to hunker down and start holding on to their money. Even the ones whom are still getting paid not to work.


That is why its important to have the checks in hand from the Govt in early April and they know that, that's why they are pushing it so fast.

[alexw]

Yeah...but, it's better than nothing. I don't believe the Fed has the authority to just give away money, do they?

They do not as far as I know. They can create money and give it to gov to then pass it on to companies, but can't do it directly themselves.

[Breccia]

They do not as far as I know. They can create money and give it to gov to then pass it on to companies, but can't do it directly themselves.

Man, I really wish I wasn't learning so much about how the US emergency defense systems worked.

[Zan15]

They do not as far as I know. They can create money and give it to gov to then pass it on to companies, but can't do it directly themselves.

No they don't create money...and give it to the govt to pass on...

They operate independently of the govt to buy and sell assets/securities/bonds/treasuries/et all.

The govt cannot force them to technically do anything.

[alexw]

No they don't create money...and give it to the govt to pass on...

They operate independently of the govt to buy and sell assets/securities/bonds/treasuries/et all.

The govt cannot force them to technically do anything.

QE is a money creation process. So yes they do create money.

And yes they can/could directly finance government expenditure.

Up to now they've done it via loans a.k.a treasuries. But there is nothing to stop them from outright financing government expenditure.

[Zan15]

QE is a money creation process. So yes they do create money.

And yes they can/could directly finance government expenditure.

Up to now they've done it via loans a.k.a treasuries. But there is nothing to stop them from outright financing government expenditure.

Again no its not. You can very easily google this information and read the economic papers on why its not a money creating process.

https://www.economicsfaq.com/is-quan...oney-printing/
https://www.cnbc.com/id/100760150
etc etc etc.


There is a lot of misinformation out there regarding what is considered "money creation".


They also cannot fund govt expenditures directly. they do not have the "money" or assets to do so.

There is no need since the govt can issue their own treasuries/debt till their fingers bleed.
Why would they need the fed to do it for them?? That would be silly.


The way things are going they would have no problem finding buyers for safe treasuries of the US govt.