Daily Alert – Tuesday 17th March 2020: Massive US stimulus halts equity fall
The central bank and government reaction to COVID-19 continues around the world. The Fed promises to help the airlines and small businesses and to buy corporate debt as that market has “frozen”. Also, the US government is considering “helicopter money” – that is, the direct gift of cash to the public.
The New Zealand government has come up with additional stimulus to the tune of 4% of GDP.
A major announcement by the UK government is expected soon.
Equities have stabilised, but oil is creeping down. Currencies are volatile and unpredictable.
The markets are essentially untradeable at the moment. Be glad that, as traders, we have the choice to not trade! Because investors, those who buy and hold, have no choice.
Having said that, I may take a WTI short if the price clears current lows. I am also interested in the reaction of the GBP to the HM Treasury stimulus that is being announced as I write.
VIP Club members can watch the video HERE