Friday 3/20/2020
After Market Close
Our comments that the worst was over yesterday were incorrect. Our comment the previous day that the 150 point rallly was just another blip on the way down was correct.
While the rallies sound impressive, they just relieve the very short term over sold condition, one can barely notice the move up over 20,000 which did not last long
Make no mistake, we remain focused on the 16,000 - 18,000 area. The drop under $20 for oil, down over $5 today is especially negative for the economy. We allowed that oil could fall back to the $12 level not seen since 1998, brace for just that.
As I said accounting is simply a belief system. One believes in the asset side on the way up. On the way down one believes in the liability side.
XOM
The $20 level of the late 10990s looks imminent. Note PMO below the zero line at bottom. No point in trying to catch a falling knife. There is no telling what havoc this is wrecking on retirements in the Lone Star State.
I will be updating this site this weekend with lots of content. So please return. If we are going to have a true stock market crash, the kind that kicks in circuit breakers multiple times, it is liable to be this next week. You heard it here first.
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