Market Commentary & Analysis For March 14, 2020

Market last week displayed the worst performance since the crash in 1987, there were two fifteen-minute trading halts, liquidity and stimulus measures established by global central banks, and a beginning in a crude oil price war. 

The big loser was small-cap Russell 2000, which nose-dived -16.6%, next was Dow index with -10.4%, following the S&P 500 index posting -8.8%, and Nasdaq Composite index with the print of -8.2%.

The continued scope of the coronavirus spread around the globe provoked measures that are awaiting the reduction spread. The largest sporting competitions in the United States were canceled, and an embargo on most of the airline flights from the old continent took effect last Friday. 

The United States government weighed various possibilities for fiscal stimulus. However, it took the entire week to reach a provisional agreement on a package that would allow for fourteen days of paid sick allowance, additional unemployment benefits, free C-virus testing, and significant tax relief for small businesses.

N.Y. Federal Reserve convoyed emergency liquidity transactions at the end of the last week after yield spreads on long-term U.S. Treasury securities market grew significantly. The ECB (European Central Bank) raised its asset acquisitions, the BoE (Bank of England) made a crisis 50-basis points interest rate cut to 0.25%, and the PBoC (People's Bank of China) reduced the reserve provision ratio for many banks from 50 to 150 basis points.

Elsewhere, crude oil markets were enduring a dual-threat of weakened demand as well as oversupply after Saudi Arabia opened a price war with the Russian Federation notably, after Saudi Arabia reduced its crude oil price for April delivery by whopping $6 to $8 per barrel and signaled production increases for an oversupplied market following Russia's failure to consent to production cuts. The West Texas Intermediate (WTI) oil cashed by 25% on Monday's session, capitulating 23% for the week.

In the United States Treasury security market, the yield on the Ten-year note established a new all-time low closing at 0.40%, but never the less finished the last week trading action with 24 basis points higher finishing at 0.95% on the week. The Chicago Board Options Exchange (CBOE) Volatility Index, which is generally referenced a fear gauge, climbed nearly 16 points to close at 57.83: it is the highest level since the financial mayhem began a few weeks ago.

Cryptocurrencies market

Friday’s market session unquestionably will go down in the history books as one of the most volatile and chaotic as required liquidations wreaked devastation across all asset classes. 

As the Dow Jones Industrial experienced its worst decline in the past 33 years, and Eurozone stocks declined farthest on record, all this spilled over to the cryptocurrency segment, which also posted its worst intraday trading selloff ever since going mainstream. 

Virtually all of the top crypto coins caught multi-year lows, and only Bitcoin and Litecoin held up over their bear market territory lows before a classic bounce that nearly erased the 20 to 30% losses on average on that day.

Notwithstanding the bounce, the selloff, which accelerated Friday's price action yet left the price charts of the topmost coins hurt. While a significant bottom price might have developed throughout the overnight crash, the TSS trend model remains the same: major correction across the board within the primary upward trend. 

While the very high volatility is anticipated to continue, traders and investors with long to intermediate-term strategies might add some positions to their overall holdings; the short-term trading is not for faint-of-heart although.

Gold Market

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Technical Analysis and Outlook:

Bitcoin completed our Inner Coin Dip $3,920 then sprang a rebound. So, what's next? We do have newly created Key Sup $4,200 to be retested, while a rebound to Mean Res $6,600 is very high. 

Technically speaking, the granddaddy coin has a great looking chart. BTW, the Bitcoin price charts did show a significant support level at $4,946 marked many moons ago by TSS.


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