Your Weekly Market Blip 3/13/20

Your Weekly Market Blip 3/13/20

It was a one day bear market! Markets ended an ugly week with a crazy late “Friday the 13th” rally of 1,400 points in the final half hour to close up 1,985 points at 23,185. Corona hedge stocks like Docusign and Zoom along with some biotech stocks were higher as was a general rebound across the board. Both BTS and IBD are still on the sidelines. President Trump declared a national emergency. Volatility is nuts! Yesterday the Dow was off 24% for the year and after the close today it was off 17% for the year. So the bear market which began yesterday is over?!! Could this be the time to finally start regulating hedge funds and ETF quant traders?
New corona cases in China yesterday were only 11 while new cases in Italy alone were 2,651 with Spain at 851, Germany was 802 and France was 591. The effects of this might be to keep investors cautious on Europe where the travel ban just went into effect while in Asia peak virus has happened and things are starting to slowly improve. Bloomberg reported that 90% of China’s factories could be back online by the end of the month. The Australian stock market yesterday swung from a 13% drop to a closing gain of 4% indicating that there could be light at the end of the tunnel and bargain hunting is happening. Infection rates in the US are still low but this might be due to testing issues so the jury here is still out although here in Seattle we are hunkering down and finding safety behind eight foot tall walls made of toilet paper rolls! “Build that wall!” Check out our Facebook page for a laugh!
Shares of Tesla were down today as reports filtered out that company executives in China were meeting with the Ministry of Industry & Information Technology regarding a lawsuit over Model 3 self-driving computer chips. The issue has to do with Tesla substituting previous generation control chips for next gen chips in newly delivered cars. The company insisted there is no difference in performance but has offered free upgrades for affected buyers.
Troop 100 canceled its bike trip this weekend and our intrepid Scoutmaster is telling everyone that when they wash their hands to recite the scout oath, law, motto and promise. This takes about 30 seconds which is longer than it takes for the Dow to move a thousand points.

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