- Will the “Friday decline” begin a day early this week?
- China finally admits to under-reporting the extent of the coronavirus.
- The starting point of the coronavirus is MUCH different than SARS & H1N1. (That’s important.)
- TSLA announces $2bn stock offing…at a time that it’s still VERY overbought.
Will the “Friday decline” begin a day early this week?
The stock market rose again yesterday….which makes 10,471 days in a row that the market has moved higher…(at least it seems that way). We would point out, however, that the market has indeed declined on several individual days over the past couple of weeks. In fact, it has sold-off on each of the last three Fridays…as investors worried that the coronavirus might get worse over those weekends…and investors took a few chips off the table…just in case the situation deteriorated dramatically over that weekend.
China finally admits to under-reporting the extent of the coronavirus.
It looks like the “Friday pull-back” might become a two-day event this week…as China is finally admitting that they have under-reported the size of the outbreak. (They’re actually attributing the big jump in cases to a revised method of counting the infections…but in reality, they’re merely just admitting that they’ve been under-reporting the numbers.) This does not mean that the coronavirus will become a much bigger problem…and thus the stock market is going to get clobbered, but it does look like it will give investors an excuse to take a few chips off the table over the last two days of the week…instead of just the last one.
It is one thing for market pundits to tell investors that they should not panic over the coronavirus, but it’s another thing to tell them it won’t have ANY impact…and thus they should continue buying stocks with both hands. ...