Well it didn’t take very long. Ms. Market showed little patience for Mole’s monkey business and quickly proceeded to wiped her backside with his lottery long ticket. Which of course was to be expected – as you recall in yesterday’s early morning update I made no secret of the fact that this entry was a Hail Mary pass at the last stop before the abyss. It’ll get a lot uglier from here until it’ll get better again.
Okay let’s not sugarcoat it – yesterday’s session started out with a nasty gap lower and then got even uglier from there as it failed to exhibit any buying interest whatsoever. The VIX punched into the red zone and ended up closing around the 25 mark.
True to form the financial media whipped itself into a collective bearish frenzy announcing the end of the world as we know it. Except that this time around they may actually be right as it has a global epidemic to back up its perma-death-wish. So why the heck would I be crazy enough to even think about grabbing a long position here?
Looks like the proverbial shyte is about to get real. Over the weekend Italy out of the blue announced more than 150 coronavirus cases along with six fatalities as per this morning. In a desperate measure to halt the progression of the epidemic officials proceeded to completely lock down eleven North Italian towns – meaning nobody is getting in and nobody is getting out.
I popped open my trading console this morning and one of the first charts I caught a glance of was TSLA. And it sort of hit me that the long term panels are nothing short of mind boggling. Look, I’m not an economist and neither do I play one on television (or is it Youtube these days?) but I’ve been around the block for a few decades now and let me tell you: this is not how large American automotive companies used to be valued.