Archives for March 2020

March 2020 - Page 10 of 14 - Money Morning - Only the News You Can Profit From

Was Tuesday’s Rebound a Dead Cat Bounce?

After stocks had their worst day since the 2008 financial crisis, they rallied back hard Tuesday.

In fact, the Dow's 1,100-point gain was its third largest daily point gain ever, behind only two days last week.

The question investors have now is whether that was the end of the correction or just a "dead cat bounce."


This “Quarantine Profit Play” Can Lock In Fast Profits on COVID-19’s Upside

This week the markets are taking a beating after geopolitical tensions and oil price wars added to the COVID-19 economic wreckage.

But there are still plenty of opportunities to make money in this uncertain market.

In fact, the last time Chris Johnson joined us on Fast Profits, he offered a trade recommendation that is now sitting on a peak gain of 400%.

And today, he's offering another potential "grand slam" - a way to profit on the rising number of coronavirus quarantines...

We're in Uncharted Territory for Oil

The meeting in Vienna last week among OPEC members and their non-OPEC allies, OPEC plus, was intended to help nations reach an agreement on production cuts to extend past the current end date of April 1.

The concern is the spread of the coronavirus will drive down the price further as global economic demand slows. But Russia was not on board. And the Saudis' response to Russia's stance was to cut its price to Chinese customers, and plan to increase production by as much as 2 million barrels per day. That fallout then led to oil's massive 30% nosedive. And on Monday, oil's decline was literal fuel to the stock market fire, causing it to fall 7.79% in one day. Since Monday's losses, both oil and the stock market have recovered a bit. Oil is sitting at around $33 a barrel and stocks rallied at open.

But unless there's a resolution, we will be retesting the market lows that we experienced in 2015 and 2016, when oil dipped below $30 per barrel and we'll see a ripple effect through the economy that's going to have a parallel impact to the COVID-19 problems we already have. Here's Kent with the details...

A Potential Coronavirus "Second Wave" in the Fall Would Slam Stocks Again

Fears sparked by the coronavirus outbreak have whipsawed stocks.

But the current outbreak could just be the "first wave" of a seasonal disease that will strike again in the fall. If that happens, it will deliver another gut punch to markets.

For investors, it's a lot to digest.

That's why it's important to monitor the situation and above all be prepared no matter what happens.

Here's how you can navigate this treacherous waters...

3 Dividend Stocks to Buy During the Coronavirus Sell-Off

Monday's 2,000-point pullback has fueled a significant amount of concerns in the market about the stability of the U.S. economy and current valuations in the market.

The ongoing battle with COVID-19 has stopped cruise ships, airlines, and hotel companies in their tracks.

We've seen Italy effectively shut down its economy.

Last night, the Prime Minister announced the country would begin quarantining its entire population of 16 million citizens.

And the spread continues across more U.S. states…

So today, I'm highlighting three different dividend stocks to buy with the recent market pullback.


Why Oil Is Plunging (and 2 Ways to Profit)

Oil prices were already down 50% year to date on Friday. They plunged another 25% yesterday.

Fears of the coronavirus spreading means that more people are staying home.

And as fewer people travel, there's less demand for oil – which causes the price to fall.

One way the leading oil-producing countries fight falling demand is by slowing production.

If they're able to decrease the supply of oil as much as the demand for it, the price should stabilize.

That's exactly why OPEC and Russia met last week. They planned to make the biggest oil production cut since 2008.

Unfortunately, the two sides couldn't come to an agreement.

Read more here...

Brace for More Fear and Panic on Wall Street as Markets Tumble

Monday's stock market declines weren't unexpected, though the extent of losses was shocking.

Investors had been selling stocks for the previous two weeks on coronavirus fears, starting immediately after U.S. benchmark indexes made record highs on Feb. 12, 2020.

A "dead cat bounce" last week didn't fool seasoned traders, who saw huge inflows into U.S. Treasuries last week as a warning sign there was more equity selling to come.

As COVID-19 hotspots cropped up across the globe and infections rose along with fatalities in U.S. cities and states over the weekend, right on cue, sell orders flooded brokerages before markets even opened Monday morning.

So many sell orders in fact, markets couldn't open. Instantaneous and extraordinary selling knocked stocks "down limit," or 7%, at the open, triggering a "circuit breaker" halt to trading for 15 minutes.

After 15 minutes, exchanges let stocks trade again, and they fell another 1% before buyers, probably computer-driven algorithms, started buying beaten-down names like Microsoft and Amazon.

But buying volume was thin all day, and sellers more often overwhelmed attempts to lift stocks higher.

Stocks closed 144 points off their session lows of 2,158, ending down 2,013.76 points to 23,851.02. That's a 7.79% drop in one day and a 19.3% drop since Feb. 12.

Most evident in yesterday's carnage were the market's worst enemies: fear and panic. That tells me something about what I'm watching today… Full Story

Most evident in yesterday's carnage were the market's worst enemies: fear and panic. That tells me something about what I'm watching today...