Phew, it’s a good thing that calmer heads prevailed, partisanship was put aside, and our folks on the hill were able to strike an historic deal and produce a heroic piece of legislation for the American people over the weekend. Wait, hold on, I’m hearing now, that did not happen. All jokes aside, of course that didn’t happen. Did you think for a moment that certain folks on the hill are going to let a crisis go to waste? Of course not. Now’s the time to bicker about totally unrelated and insignificant things.
Now, of course, once again the Federal Reserve has stepped up to let markets know that they will virtually by everything necessary to provide liquidity. I don’t believe that includes your home at the moment, but give it time, the crisis is still young.
Ok, I’m a little frustrated at the moment, but this too will pass. As for today, it once again appeared that stocks wanted to go up, but the conditions will just not support any measurable buying at this point. Yes, we’ll likely get a little bounce once the folks on the hill graces us with their plan, but just like today’s brief rally on more Fed support, rallies are likely to be short-lived, until we turn the corner on the virus and there is a light at the end of the tunnel.
For the day, the Dow Jones Industrial Average was down 582 points to finish the day at 18,591. The S&P 500 was down 67 points to close at 2,237. Gold was up $75 to trade at $1,559 per ounce, while oil was up $.64 to trade at $23.27 per barrel WTI.
The good news today, is that bonds started to act a little better, and gold went up. So, the liquidation phase of this process may winding down. Stocks didn’t go up today, because there was no reason for them to go up. Once again, there has to be a light that is able to be seen at the end of the tunnel. Once we get that light, then we can start to put the pieces back together in the stock market.
Try to have a nice evening everyone. Stay strong!