Last Thursday, the Dow dove 2,350 points, triggering an automatic, 15-minute shut down.
On Friday the 13th, following President Trump declaring a Covid-19 State of Emergency, the Dow Jones Industrial Average snapped back with its greatest point gain since 2008, up 2,710 points.
However, the market closed down almost 9 percent on the week.
Despite the Federal Reserve’s surprise interest rate cut on Sunday, dropping rates to zero, there was no confidence on the Street when the markets opened Monday. Trading on the New York exchange was halted briefly after the S&P plunged 7.6 percent.
The NASDAQ shed 970 points to end Monday at 6,904.
The S&P gave up over 4 percent on the day to end at 2,385.
The S&P has dropped 12 percent over the past four weeks, erasing $3 trillion in value in its worst performance since 2011.
The CBOE Volatility Index, which gauges investors’ expectations of market turbulence, rose to 62 on 9 March, its highest intraday mark since 2008.
The 10-year treasury note’s yield fell to 0.71 percent briefly on Friday, then crept up to 0.99 percent, still in record territory below 1 percent.
Today, treasury yields jumped, with the 10-year U.S. rate breaking back above 1 percent on news of President Trump’s announcement of a trillion dollar stimulus plan. The news pushed the Dow up over 1,000 points
Gold closed Friday at $1,529, and it closed today at same price… off about 4 percent as debt-burdened investors sell out of the safe harbor to cover their market losses.
Despite its decline from last week’s $1,700 high, gold prices have climbed 10 percent since the first of the year and are up 20 percent over the last 12 months.
TREND FORECAST: We maintain our forecast that should gold break below $1,450, the bottom is $1,390 per ounce.
And, it should be noted that when equities were crashing at the onset of the Panic of ’08, gold prices did not sharply spike until 2009. Now, as it was back then, desperate stock market players are losing everything they have in equities and are using gold to cover margin calls and other investment losses.
As markets continue to fall and economies crash, we maintain our forecast that when gold prices break above $1,730, they will rapidly spike well above $2,000 per ounce.
Silver prices continue their dive. Since silver is used in industry and the “Greatest Depression” has begun, its price will not climb with gold… until economic conditions considerably deteriorate and people flock to more affordable silver as a safe-haven asset
TREND FORECAST: With each passing day, with no hard data to support their actions, from presidents to governors to small town mayors, politicians across the nation have declared emergency powers and with each day further lock down the nation.
Everything from the butcher, the baker, hi-tech, heavy industry, movie theaters restaurants… from schools to the NBA season shutting down… both Main Street and Wall Street are simultaneously crashing.
This has never happened in modern recorded history.
When stock markets crashed in the past, Main Street would be hit by the aftershock.
Therefore, we forecast a long, continual decline of the once overvalued equity markets, since earnings will dramatically fall from the fallout of governments imposing mandated closures of business, events, and gatherings.
THE “GREATEST DEPRESSION” HAS BEGUN. It will be far worse than the Great Depression.
With gun sales in America suddenly spiking, people sense it.
Crime will dramatically rise.
From dishwashers to wait staff, chefs to restaurant owners… name the industry… from barbers to bank tellers, from concert halls to casinos, with 70 percent of Americans currently unable to pay for a unforeseen $400 expense, how will they pay their rent, phone bill, utilities, gas… when they are out of work and broke?
As Gerald Celente has long noted, “When people lose everything and have nothing left to lose, they lose it.” And as the “Greatest Depression” worsens, they will lose it like never seen before in modern history.
Already in a military state of mind, with governors calling in the National Guard, as crime rises, so, too, will police state activities to clamp it down.
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