Coronavirus Stock Market buy off.

[PatsFan1283]

The market rips higher. We haven't seen a big Friday rally for almost a month, that is a positive for the market. I don't know if the bulls can regain the high this year but it's likely the lows are already in. The last negative headlines batch could come later this month...GDP/Payroll...etc so we might run into some baby bears along the way. The Treasury/the Fed will pull out all stops to prevent economy to fall in abyss.

Given how divergent the economy/market have gotten, I could see the fed taking the foot off the gas at some point and the treasury shifting to policies that are more in line with helping main st. Maybe more stimulus payments, extended UE, more PPP for small biz...

30k DOW/30% UE doesn't look good in an election year.

 

[NorthernStar]

no correlation with economy and the market right now. Like they are in different rooms and arent talking

 

[NorthernStar]

Does anyone know if and potentially how much the treasury is buying in the equity market?

 

[Ricboff]

no idea, i think snoop knows excatly what etfs and time of day......he aint sharing . The chap posts from the Caymen Islands

 

[PatsFan1283]

The treasury doesn't buy stocks, are you thinking of the federal reserve?

They don't either but they could eventually

 

[NorthernStar]

The treasury doesn't buy stocks, are you thinking of the federal reserve?

They don't either but they could eventually

so will we know when they start buying like Japan? Doesn’t Japan basically buy mutual funds or eft’s. Just trying to figure out what is causing the market to go up.

 

[Michelangelo]

so will we know when they start buying like Japan? Doesn’t Japan basically buy mutual funds or eft’s. Just trying to figure out what is causing the market to go up.

You're focusing on the patches and not the resolution of the problem, NS. I know you hate the Pres. but there is much to be learned by watching his team's nightly briefings.

The problem started with the virus. The policymaker's solution became a much bigger problem. They shut down the economy and artificially created an upside down tree of problems, virtually all negative to the economy.

So the market plummeted in response to the uncertainty that the virus and the shutdowns created.

The market began its turnaround when two things came out of the same Presidential briefing. You may recall that I wrote this on 3/23, the day before the market turnaround:

"Market is going to turn up tomorrow, guys.

Don't know if we've bottomed yet but I think we're in store for a significant bounce tomorrow and maybe a couple of days straight with rising volume which we haven't seen since 2/18. If not tomorrow, very soon.

Listened to the President's corona briefing tonight. He mentioned chloronique again. And he stressed strongly several times that the business shutdown would be coming to an end soon. Based on everything he said I would estimate that he is gonna recommend lifting in different parts of the country at different times starting no sooner than the end of his 15 days (think we're on day 7 or 8 now) and no more than two weeks from now. He seems to think that there is a convergence of data and preparedness that will allow him to focus on getting the "American worker and small businesses back on their feet". He said the bill in Congress right now was almost signed last night before someone (Nancy Pelosi) mucked up the works. He expects it to be signed soon without the ridiculous add ons that pork up normal bills.

Just one man's opinion. Mine."

///

In that Presidential briefing the Pres talked (for the first time) about a remedy, chloroquine, (I had already read about it's success in France), and he set a target date for phased in business returns of about the end of April. THat is precisely what the market wanted to hear to stabilize. A remedy for the virus, and a reopening of the country - a return to normalization in terms of productivity.

Since then the markets are expressing approval of how the government at both state and federal levels is taking strong steps to mitigate the virus. And there has been a growing confidence in the President's efforts to bring all manner of experts to the effort, including medical, scientists, policy makers, the military, and most importantly the best minds in the private sector leading to nightly progress reports as to how the problems of PPE supply and ventilators were being addressed (mostly by repurposing American companies) and how the federal (and some state) government was partnering with the private sector to work on therapies and vaccines. It has been incredible all they have accomplished in barely a month.

Fast forward to last night. In last night's briefing the President said two important things -1) that there was tremendous evidence that Gilead's remdesivir was looking like a successful therapeutic while there were many other drugs being worked on by many others showing promise. and 2) he unfurled the states three step "re-opening" guidelines saying that he expected some states to be implementing very soon, while others continued to work on their "curve flattening". It also seems that the major "hot spots" are on the downside of their curves.

So... 1) cure and 2) re-opening, both buttressed by confidence that this task force team has their shit together. Markets respond.

This country (and world) needs to get back to normal. Things were booming when the policymakers artificially slammed the door. The market wants to see the path back to the economy of 6 weeks ago. They are seeing it and responding to what they are seeing.

Just my view.​

 

[Ricboff]

'Things were booming when the policymakers artificially slammed the door.'

who are they, specifically ?

 

[PatsFan1283]

so will we know when they start buying like Japan? Doesn’t Japan basically buy mutual funds or eft’s. Just trying to figure out what is causing the market to go up.

Yes, it will be public info but I'd say it is going up because of ZIRP (zero percent interest short term fed funds rate) and QE (you can google this to get more info on what it is but basically large scale bond buying that pushes investors into stocks as bond circulation dries up) and fiscal stimulus in the trillions as well as the promise trillions more are on the way.

You're never going to read FBN/Bloomberg/CNBC and the headline is "Fed keeps rates at 0 and expands balance sheet by massive amount, market goes up"...We've been doing this since 2009 (as well as other less extensive operations long before that) and you never see that headline to explain a day or week worth of gains. You see it in retrospect after years have gone by, but never in real time.

I don't think Trump comments or the market being smitten with the govs competence has much to do with it, but opinions make the world go round.

 

[Michelangelo]

'Things were booming when the policymakers artificially slammed the door.'

who are they, specifically ?

The President, his doctor expert advisers, Fauci and Birx, and the Governor's who went first shutting down their states starting a landslide of fear and economic destruction.

However, it really doesn't matter who, from an investment perspective. It matters THAT they did what they did, creating a near depression. Will we come out of this whole? I doubt it. A lot will change and we have already created serious harm. Wait 'till earnings start coming in for the next few quarters. There will be some serious shortfalls like we've never witnessed before.

We're not out yet. There will be a whole new set of bumps awaiting in the road. But the reason the market turned around is in what I typed above. The patches are much less important than the economy resuming its organic free market engine.

 

[Ricboff]

Yes, it will be public info but I'd say it is going up because of ZIRP (zero percent interest short term fed funds rate) and QE (you can google this to get more info on what it is but basically large scale bond buying that pushes investors into stocks as bond circulation dries up) and fiscal stimulus in the trillions as well as the promise trillions more are on the way.

You're never going to read FBN/Bloomberg/CNBC and the headline is "Fed keeps rates at 0 and expands balance sheet by massive amount, market goes up"...We've been doing this since 2009 (as well as other less extensive operations long before that) and you never see that headline to explain a day or week worth of gains. You see it in retrospect after years have gone by, but never in real time.

I don't think Trump comments or the market being smitten with the govs competence has much to do with it, but opinions make the world go round.

yup....govt to the rescue, rinse and repeat. No economic downturns allowed


they say the markets r forward looking, GS just announced atrocious numbers and the stock was basically flat. Telling us a lot has been priced in already? Is the market pricing a short downturn? dunno


learned a long time ago: trade waht u see, not what u think.

how many people 3 weeks ago, with all the doom and gloom would have bet on a 30% bounce of the lows? crazy shit.... 2643 on the ES may still be tested, but hey, maybe V-shaped with people sitting home , Disney World closed ...

 

[Ricboff]

The President, his doctor expert advisers, Fauci and Birx, and the Governor's who went first shutting down their states starting a landslide of fear and economic destruction.

However, it really doesn't matter who, from an investment perspective. It matters THAT they did what they did, creating a near depression. Will we come out of this whole? I doubt it. A lot will change and we have already created serious harm. Wait 'till earnings start coming in for the next few quarters. There will be some serious shortfalls like we've never witnessed before.

We're not out yet. There will be a whole new set of bumps awaiting in the road. But the reason the market turned around is in what I typed above. The patches are much less important than the economy resuming its organic free market engine.

in the real world if one displays horrific incompetence ya get fired, if one's actions caused tremendous harm to others may get sued


N American leaders with this CLEARLY unprepared, sleep-at-the-wheel pandemic 'response' that will cause mass economic and health damage? ...get a pass? In Canada, Trudeau is lauded, popularity skyrocketing . He should be in jail...oh well.....

 

[PatsFan1283]

I think Birx and Fauci are both pretty unimpressive given they're supposed to be the best of the best at this. Fauci said it was more like a flu season in late Feb and Birx has since admitted the entire virology community missed the severity of this (so much for experts)

However.....In an alternate universe with smarter people at the helm, GL telling Americans that we need to take this seriously when after a month of lockdown there are like 8k deaths. That's a big, big leap. Unfortunately, there had to be a little blood on the streets for people to think it was an issue worth disrupting society (and obviously many still don't, don't really feel like debating that part as whats done is done obviously and I think by the time this is over that not many will believe this)

 

[snoop]

<section class="main-column-v2">

American Airlines Inc	$5,810,000,000
Delta Air Lines Inc	5,400,000,000
Alaska Air Group Inc	992,000,000
DaVita Inc	240,000,000
Encompass Health Corp	213,000,000
Amedisys Inc	96,000,000
Chemed Corp	80,200,000
Meritage Hospitality Group	29,100,000
Ruth’s Hospitality Group Inc	20,000,000
J Alexander’s Holdings Inc	15,100,000
Fiesta Restaurant Group Inc	10,000,000
Potbelly Corp	10,000,000
Hallador Energy Co	10,000,000
Quantum Corp	10,000,000
Shake Shack Inc	10,000,000
ZAGG Inc	9,443,728
Air T Inc	8,215,100
WaVe Life Sciences Ltd	7,234,890
New Age Beverages Corp	6,868,400
Lindblad Expeditions Holdings	6,600,000
Legacy Housing Corp	6,545,700
Kura Sushi USA Inc	5,983,290
Perma-Fix Environmental Services	5,666,300
Drive Shack Inc	5,276,742
Misonix Opco Inc	5,199,487
SIFCO Industries Inc	5,024,732
Frequency Electronics Inc	4,964,810
ENGlobal Corp	4,915,800
MannKind Corp	4,900,000
CPI Aerostructures Inc	4,795,000
Natural Gas Services Group Inc	4,600,000
Optinose Inc	4,400,000
US Auto Parts Network Inc	4,107,388
Crawford United Corp	3,679,383
Vaso Corp	3,610,900
PolarityTE Inc	3,576,145
Adamis Pharmaceuticals Corp	3,191,700
Ballantyne Strong Inc	3,173,900
Biolase Inc	2,980,000
CRH Medical Corp	2,945,620
Identiv Inc	2,900,000
Phunware Inc	2,850,336
Joint Corp/The	2,730,000
Oblong Inc	2,416,600
BK Technologies Corp	2,196,335
HyreCar Inc	2,004,175
Enservco Corp	1,939,900
RiceBran Technologies	1,800,000
Blonder Tongue Laboratories Inc	1,768,762
Marrone Bio Innovations Inc	1,723,000
BSQUARE Corp	1,600,000
Educational Development Corp	1,447,400
Workhorse Group Inc	1,411,000
Rocky Mountain Chocolate Factory	1,400,000
Pro-Dex Inc	1,360,100
Infinite Group Inc	957,373
ImmuCell Corp	937,700
ClearPoint Neuro Inc	896,000
Rave Restaurant Group Inc	656,830
Pulmatrix Inc	616,795
Helius Medical Technologies Inc	323,000
Lodging Fund Reit III Inc	286,100

<tbody>
</tbody>

Bloomberg is tracking companies that receive grants from Mnuchin & Co. Treasury coffer is $500B from $2.2T bailout fund. It's very tough to get your hand on this money if you don't have a well connection with DC. The top 3 airlines got almost $13B in grants. This is socialism at its best. :toast:












</section> <aside class="right-rail right-rail-v2" data-stick="true"></aside>

 

[Bruins4Life]

Didn't United Airlines get anything?

 

[snoop]

UAL will receive $5B in grant from Mnuchin, the deal has not finalized yet. They're holding out for more...

 

[snoop]

Cuomo is putting Trump to the sword.

Game. Set. Match.

 

[Michelangelo]

<section class="main-column-v2">

American Airlines Inc	$5,810,000,000
Delta Air Lines Inc	5,400,000,000
Alaska Air Group Inc	992,000,000
DaVita Inc	240,000,000
Encompass Health Corp	213,000,000
Amedisys Inc	96,000,000
Chemed Corp	80,200,000
Meritage Hospitality Group	29,100,000
Ruth’s Hospitality Group Inc	20,000,000
J Alexander’s Holdings Inc	15,100,000
Fiesta Restaurant Group Inc	10,000,000
Potbelly Corp	10,000,000
Hallador Energy Co	10,000,000
Quantum Corp	10,000,000
Shake Shack Inc	10,000,000
ZAGG Inc	9,443,728
Air T Inc	8,215,100
WaVe Life Sciences Ltd	7,234,890
New Age Beverages Corp	6,868,400
Lindblad Expeditions Holdings	6,600,000
Legacy Housing Corp	6,545,700
Kura Sushi USA Inc	5,983,290
Perma-Fix Environmental Services	5,666,300
Drive Shack Inc	5,276,742
Misonix Opco Inc	5,199,487
SIFCO Industries Inc	5,024,732
Frequency Electronics Inc	4,964,810
ENGlobal Corp	4,915,800
MannKind Corp	4,900,000
CPI Aerostructures Inc	4,795,000
Natural Gas Services Group Inc	4,600,000
Optinose Inc	4,400,000
US Auto Parts Network Inc	4,107,388
Crawford United Corp	3,679,383
Vaso Corp	3,610,900
PolarityTE Inc	3,576,145
Adamis Pharmaceuticals Corp	3,191,700
Ballantyne Strong Inc	3,173,900
Biolase Inc	2,980,000
CRH Medical Corp	2,945,620
Identiv Inc	2,900,000
Phunware Inc	2,850,336
Joint Corp/The	2,730,000
Oblong Inc	2,416,600
BK Technologies Corp	2,196,335
HyreCar Inc	2,004,175
Enservco Corp	1,939,900
RiceBran Technologies	1,800,000
Blonder Tongue Laboratories Inc	1,768,762
Marrone Bio Innovations Inc	1,723,000
BSQUARE Corp	1,600,000
Educational Development Corp	1,447,400
Workhorse Group Inc	1,411,000
Rocky Mountain Chocolate Factory	1,400,000
Pro-Dex Inc	1,360,100
Infinite Group Inc	957,373
ImmuCell Corp	937,700
ClearPoint Neuro Inc	896,000
Rave Restaurant Group Inc	656,830
Pulmatrix Inc	616,795
Helius Medical Technologies Inc	323,000
Lodging Fund Reit III Inc	286,100

<tbody>
</tbody>

Bloomberg is tracking companies that receive grants from Mnuchin & Co. Treasury coffer is $500B from $2.2T bailout fund. It's very tough to get your hand on this money if you don't have a well connection with DC. The top 3 airlines got almost $13B in grants. This is socialism at its best. :toast:












</section> <aside class="right-rail right-rail-v2" data-stick="true"></aside>

Tracking this is a worthy effort but I heard in Thursday night's briefing that Moderna got a boost. I don't see that reflected. Would love to see a complete and accurate list.

Would also love to hear the reasoning for favoring the companies on the above list. Seems rather random to me. Are they playing political favoritism with our money? I hope not.

 

[snoop]

Moderna probably has not filed its 8-K yet, they would list it if it did.

Everyone would love free $ - the pie is too small, a lot people will be left out.

 

[Ricboff]

NS: 'no correlation with economy and the market right now. Like they are in different rooms and arent talking'

Tanner: 'Market is independent of reality..no bearing on the economy or health of the country..'



https://www.cnn.com/2020/04/15/us/gallery/food-banks-coronavirus/index.html

line ups at food banks...

'we ran out food in 45 minutes '. executive director Myriam Michel told the Boston Globe. 'the need has increased tremendously'

food banks are reporting a 40% increase in demand