All analyses and thoughts have been done before market opening in the US. To me this somehow is one of the hardest points in trading, as this takes time and a lot of reading and studying even before markets open. But being good prepared for the opening and the day is the ground to survive the day. This can be done in different ways, what you see is just one way of many. It is also a way to come away from being a slave of the charts, even chart analyses are an important part of all this analyses.
Worst week since 2008:
A trading day is still pending. However, the MSCI World Index was already down 8.9 percent from Monday to Thursday. It could be the worst week since November 2008 when the loss was 9.8 percent. At that time, the global economy was in the middle of a severe financial crisis. The index tracks the development of 1,600 stocks from 23 industrialized countries.
The Dow Jones index of standard values closed 4.4 percent or 1190 points lower at 25,766 points. For the Dow-Jones, it was the biggest drop in points in one day in its history. The Dax and EuroStoxx50 fell temporarily on Thursday by around 4.5 percent each to their lowest level in more than four and a half months. The Asian stock exchanges started trading again on Friday with losses.
The rating agency Moody's expects a global recession in the first half of the year as a result of the outbreak of the corona virus. The USA is also not exempt from this. The initial assessment that the virus could be limited to China was too optimistic. The likelihood of a pandemic increases.
(Translated from this source:
https://www.spiegel.de/wirtschaft/u...e-2008-a-e25a9cf1-5b81-4f47-9f11-74d7e0b51aff)
Global stocks plummet again in worst week since 2008:
Investors have been spooked in recent days by a sharp increase in the number of warnings from companies including Ab Inbev (BUD), Disney (DIS), Apple (AAPL), Microsoft (MSFT) and Qualcomm (QCOM) who say the coronavirus is hitting their business. IAG (ICAGY), the owner of British Airways, and Chinese search giant Weibo (WB) became the latest to do so on Friday.
Major firms have seen a sharp reduction in demand for the products and services, especially in Asia. But manufacturing, tech and pharmaceutical industries have also seen their supply chains disrupted by factory closures in China that have limited production.
Where the outbreak goes from here is far from clear, and that's also hammering markets and business. On Friday, IAG said that "ongoing uncertainty" over the outbreak's potential impact and duration mean it's not possible to quantify the total cost. Its shares dropped more than 8% in
Source:
https://edition.cnn.com/2020/02/27/investing/asian-market-latest/index.html
From here we started when market in the US was opened:
Interesting also to see the demand for oil is shrieking and this is seen in the following charts. It gives an idea how much lower the world economy is running step by step for the moment:
The next is a picture about the relations between most important markets. Maybe a bit difficult to read for those who are not familiar with US market symbols:
The H and I Volatility in the MSCI Index even rose to new highs which does not give any sign to buy. Caution on not protected shorts or naked puts is still a must.
And even in the S%P 500 Index the Vola has gone up to new highs. Also not really a good sign to go long just because of thoughts:
And this is the current situation we have at the moment in the 60 Min TF in this Indices. I only concentrate on this once for simplicity.
Coming to the final point for the moment: Some of the most dangerous situations we now have is in Iran and North Korea. Through the US sanctions, their medical supplies are limited and down and this could lead to a huge outbreak not even seen in China. Everybody is free to think further about this topic as she/he wishes.
DP
