Stock Market Direction?

Everyone is wondering now if this is a V-shaped recovery or if we are going to retest the bottom (around 2200). If we retest and break through, there is a very strong support level at 1600 because that was the top of the market in 2000 and 2008. If we do see a collapse, I don’t think it will go below that level.

I’ve been seeing suggestions that the mortgage market is broken since banks are now demanding higher interest rates because they are anticipating layoffs and want to be compensated for taking on the credit risk. It could be the overpriced real estate market is very shaky here. So a collapse in the housing market could be the trigger — again.

Layoffs and Savings

Are You Deficient?

If you use cronometer.com, a free service, you can see exactly what your micronutrient profile is each day. No guessing whether you are deficient or excessive in anything. If you are into nutrition, it’s kind of fun. I’ve discovered I can be regularly deficient in lysine, iodine, and choline. Had no clue about this before using cronometer.

Lysine/Choline

Ancient Rome

The Roman Empire perhaps reached its zenith under Marcus Aurelius in the 2nd century AD, but then the plague came.

Penalty for Coronavirus?

Egomania

I think all the presidents have been egomaniacs to some degree — Trump is perhaps a little more conspicuous than the others…the boastfulness, the strong opinions about everything and anything. But Obama too was something of an egomaniac…he was known for lecturing people like a professor in a quiet but very condescending way, i.e., he knew better than you or anyone else. Egomania is a kind of qualification for the job.

Therefore, it is best to judge presidents not on their personalities, which, like most of us, can be pretty strange, but solely on their actions.

“Chinese Virus”

Layoffs and Savings

40% of Americans have less than $400 in savings. And we are now having gigantic layoffs. How are these people going to survive, how are they going to pay for the necessities? One pundit pointed all this out, and warned about riots in the streets over food. Farfetched? Not so sure.

No Savings

Break With China

Not only should we blame China for this virus (second time around with them, which shows criminal negligence), but we should BREAK with China, a communist country with concentration camps.

Maher Condemns China

Question

What do you really know and how do you know it?

Bale Out Nation

The negative side to all the various bale outs by the Federal Reserve and the government: more crony capitalism where weak companies that should fail and just disappear are kept alive. Why there has been such poor growth in the last 10 years — all these zombie companies that are unproductive. Bale out nation — that’s how you undermine capitalism. Assets are spent on unproductive companies.

Federal Reserve Takes Action

Pretty blatant market control by the Federal Reserve. Will be interesting to see if their market manipulation works and prevents a collapse. Their 2.3 trillion this morning reversed the futures from negative to strong positive. 2787 is a 50% retracement from the lows. If it gets as far as 2850, the bullish case takes over. Otherwise, it’s a bear trap. If it starts to fall again, the next leg down is going to be truly terrible, as this rally is all based on funny money from the Federal Reserve — it worked in 2008/9, will it work again? Earnings start on Tuesday with JPM. Not surprising the Fed sprang another 2.3 trillion this morning as unemployment went up another 6.6 million people in just a week. It’s really no long about coronavirus, as the plateaus are in for the virus — it’s about the economic devastation that it will bring now and for the next 5 months minimum. The unemployment rate may get to 20%. That’s what the Fed is reacting to.

Economic Recovery?

Will the Federal Reserve and the Treasury just paper over this financial crisis with tons of dollars like they did in 2008 so there is no collapse or will the collapse happen anyway? That’s the question.

Stock Market Bulls