Coronavirus Update – Market Broke Through 13000
NYSE Broke through 13,000. I think the fear is out of sync with a 1 to 2% corona fatality rate, but that was the rate a couple days ago. Now the estimate seems to be 5%. The fact that there is a rate of change of the rate is another issue.
Vermeulen’s 251 watchpoint for the SPY goes to the Oct 2018 level, which for the NYSE was like 11,300.
Good idea to add a position limiting the down-side in this market. Maybe a bearish 3X ETF. But you’d have to watch it closely and get out of it once the fatality rate settles to a value and re-evaluate, as I see it.
Vermeulen’s writeup:
Barchart.com – SPY Breaks Below Fibonacci Bearish Trigger Level
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