Friday, March 13: Mid Day Review
ES can touch 2650 at top, a prolonged consolidation around 2547 and can touch below below at 2410.
The fact that the Fed, Treasury and the Congress trying very hard to pump liquidity into the markets and easing the stress clearly indicates the fear and panic still looming around. It appears that the bear markets are far away from being over.
Friday, March 13 Pre-Market Commentary
Our projections for the US equity markets:
NQ can touch 7302 at top with a cap at 7529 and below at 6921 with a floor at 6633.
ES can touch 2548 at top with a cap at 2599 and below at 2316 with a floor at 2142.
YM can touch 22279 at top with a cap at 23144 and below at 20565 with a floor at 18124.
Market Outlook
The global equity markets have been a roller-coaster ride (or rather a downhill race) this week. Especially eventful was today with the Fed announcing $1.5 Trillion stimulus to keep the economy rolling, more cities across the world being on lock down for Coronavirus (COVID-19) scare, Disney closing their US parks starting Sunday, March 14, as well as NYC declaring state of emergency, and yet, the markets managed to close almost double digits down (~9.5% across three major US indices). The fact that the Fed's consistent actions to help ease the markets by cutting the rates by 50 bps earlier this week and then announcing a stimulus package today shows nothing but the panic and desperation to keep the economy floating. The problem in the current scenario is not the economic catalysts but unknown-unknowns of the impacts of COVID-19 in the coming weeks to months.
In the longer term, the sectors such as media and entertainment, restaurants, cruise-lines, airlines, oil, and banks are expected to take a further hit with cruise-lines industry to witness a possible consolidation into 1-2 entities down the lane. The effect of supply chain disruption is still not measured and we don't know the damage it will have caused by the time the global pandemic has slowed down.
ES can touch 2650 at top, a prolonged consolidation around 2547 and can touch below below at 2410.
The fact that the Fed, Treasury and the Congress trying very hard to pump liquidity into the markets and easing the stress clearly indicates the fear and panic still looming around. It appears that the bear markets are far away from being over.
Friday, March 13 Pre-Market Commentary
Our projections for the US equity markets:
NQ can touch 7302 at top with a cap at 7529 and below at 6921 with a floor at 6633.
ES can touch 2548 at top with a cap at 2599 and below at 2316 with a floor at 2142.
YM can touch 22279 at top with a cap at 23144 and below at 20565 with a floor at 18124.
Market Outlook
The global equity markets have been a roller-coaster ride (or rather a downhill race) this week. Especially eventful was today with the Fed announcing $1.5 Trillion stimulus to keep the economy rolling, more cities across the world being on lock down for Coronavirus (COVID-19) scare, Disney closing their US parks starting Sunday, March 14, as well as NYC declaring state of emergency, and yet, the markets managed to close almost double digits down (~9.5% across three major US indices). The fact that the Fed's consistent actions to help ease the markets by cutting the rates by 50 bps earlier this week and then announcing a stimulus package today shows nothing but the panic and desperation to keep the economy floating. The problem in the current scenario is not the economic catalysts but unknown-unknowns of the impacts of COVID-19 in the coming weeks to months.
In the longer term, the sectors such as media and entertainment, restaurants, cruise-lines, airlines, oil, and banks are expected to take a further hit with cruise-lines industry to witness a possible consolidation into 1-2 entities down the lane. The effect of supply chain disruption is still not measured and we don't know the damage it will have caused by the time the global pandemic has slowed down.
