Market Snapshot November 19, 2020
Good Thursday AM,
Equities sold off late into the day and are in the red again today. The third day in a row. Bonds are benefitting from the selloff, which is likely news based. Unemployment claims spiked almost 5% to 741k and spooked the markets. This causes concern that the economy is not out of the woods and that the virus could bring us into a double dip recession. This mini-rally in bonds appears to have legs as we are now breaking through resistance and into another trading channel, but it really depends as much on where we close not only where we trade intraday.
Great comment from Dan Rawitch today: “While I hate stimulus and have proven repeatedly that the FED cannot grow the economy by adding more, it can help level out the dip and provide some relief. The problem is that for every dollar the FED grows the economy, he has to spend SEVEN dollars! Not long ago, $2 dollars of stimulus would get us $1 of growth. The more the Fed adds to the deficit, the more of a head wind he causes for the economy, thus causing the need for EVEN MORE stimulus.
And last, The CDC is out today with a community service note regarding Thanksgiving travel… Travel may increase your chance of getting and spreading COVID-19. Postponing travel and staying home is the best way to protect yourself and others this year.
Please remain safe and healthy, make today great.