Thursday, May 07, 2020

Another 7 months like this....

and the entire country can be unemployed by Christmas, but hey, at least stocks will be at record levels....
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By now you've probably heard the news that weekly jobless claims came in at 3.2 million.  Again, just 5 times higher than the previous ALL-TIME high and bringing the COVID 7 week total to 33.5 million.  So, that only leaves about 120 million Americans working, the rest of us are day trading apparently.



However, as has been the game for the past month, the overnight trading spiked stocks - I'm not a conspiracy theorist but it's pretty obvious when the same buyer comes into the market at 12:55am and 1:55am every single night - that triggers program trades to buy more (in their most simplistic form when people are sleeping there are programs designed to buy if stocks are up x%) which triggers more buying etc.  Everyone on CNBC bemoans the program trading on the way down, but seems to forget the way it's artificially supporting stocks here. 

**** Not advice ****
The markets are caught in a no no man's land right now.  The bears want to short a little higher (like 2% higher) and the bulls want to buy about 10-20% lower.  So, it doesn't take much to swing markets around. 

I'll follow-up with a more thorough post tonight. 

Cheers!

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