WASHINGTON – The US Senate passed first of a likely 3 coronavirus relief plans Wednesday afternoon, jolting Wall Street out of its second major crash this week and slowing the latest Wall Street selling panic. The bill now heads to the White House for President Trump’s signature. The Dow Jones Industrial Average (DJI) had been sinking faster and faster all day Wednesday. The average was down well over 2,000 points at its worst, looking like it wanted to tag Monday’s horrific -2,999 peak crunch-fest. But then stocks reversed, at least a little bit.
“The Dow Jones Industrial Average dropped 1,333 points, or 6.3%. The Dow was down more than 2,300 points earlier. The S&P 500 was down 5.2% and closed nearly 30% below a record set last month. The broad index also dipped below its 2,351, its closing low during the Christmas 2018 sell-off. The Nasdaq Composite slid 4.7%. Virtually no market was safe from the selling wave, with crude prices having their third-worst decline on record.”
How bad was Wednesday’s selling panic?
Not only were most stocks sent to the slaughterhouse again. But due to a sharp jump in historically low interest rates Wednesday morning, bonds, bond funds and preferred stocks took a tremendous and unaccustomed hit, as Innovative Income Investor guru Tim McPartland duly noted.
“Leave the office for 90 minutes and come back to dramatic destruction–I mean my little bit of New Residential NRZ-C down 40%–yikes!! I had a sell in, but obviously it didn’t trigger.”
I had a sell in for this one as well. But, glued to my computer all day, I kept altering bids until I caught one. For a great loss and with great regret. But you have to save some of what’s left of your money to come back a few days, weeks or months later when all the bodies are cleared and attempt to make that money back. And just like a card game, if you don’t have money to bet, you’re out of the game.
Cutting the Seeking Alpha dolts down to size
Tim also gave a well-deserved poke to the perma-bull assholes who’ve turned that once useful investment advice site Seeking Alpha into a sinkhole solely inhabited by incredibly verbose, lousy touts who never met a rotten stock they didn’t love and who are (allegedly) never wrong.
“Unfortunately the writers on Seeking Alpha are all playing the hero roll and continue to write ‘buy, buy, buy’—what fools. Folks that interpreted their (the writers) success over the last few years as skill and wisdom will be down 75% before this is over–it may take a lifetime to recoup their loses–but most will liquidate and never ever invest again–instead opting for a mayonnaise jar in the back yard as a safe haven.”
These clowns and fakes lost me money on everything I ever picked up from them, Tim, so I got out while the getting was good. Meanwhile, SeekingAlpha is probably losing the bulk of their readership right now, given what’s happened to bullish investors in this La Brea Tar Pit of a market. This site’s recommendations probably lie at the core of the current selling panic. What a waste of bandwidth.
The dark, gallows humor of the Great Market Crash of 2020
Tim’s fans had a field day with this miserable bear of a market in the comments section. The following succinct executive summary on Wednesday’s gloomy action sums up the bullet points of today’s market action.
“Stock market is trading as if the US and the rest of the world have declared bankruptcy. Stocks, bonds, gold, oil are all down big. Seems like every investor, company and institution is going to cash at any price.”
Apropos of the tar pits previously cited, another commenter distilled Wednesday right down to its very essence.
“Now I know the dinosaurs felt when they saw that asteroid.”
Fox Business noted the obvious, save for one surprise exception to the carnage.
“Winners were few and far between, with meal-delivery service Blue Apron among the only bright spots.
“The company’s shares soared as investors speculated that it would benefit from restaurants closing their dining rooms. Shares were already up 187 percent this week through Tuesday.”
Blue Apron is mired in its own unique La Brea tar pit
Meal kit maker Blue Apron (trading symbol: APRN) has been one of the worst disasters in the generally rocky IPO market that’s limped along for the last 2 or three years. Blue Apron has been in a near-perpetual selling panic ever since its debut. Investors have grown tired of hot concepts like this one that sink like a stone once they’ve ponied up the $$ for some of these overpriced shares.
A profit desert like APRN is no exception. It tanked hopelessly from its IPO price down to penny stock territory. I don’t believe they’ve ever made a dime of profit. Just a few trading days ago, these shares hit a low point of $2.01 per share. Wednesday the bulls kept the party going, goosing these worthless shares much higher. The stock closed at $16.25 per share, up $9.70 from its already bullish Tuesday close – a whopping 148% gain on a gloomy day. All based on a conjectural coronavirus scenario, apparently.
That’s how nuts this market has become.
While the world burns and markets sink, the WHO idiocracy decides to go PC
An interesting sidebar to this week’s action comes once again via CNBC. “Reporter” Dawn Kopechi finds a way to tar President Trump for “racism” by accepting at face value a meme currently being pushed by the China suck-ups running the generally useless (and costly) World Health Organization (WHO).
“World Health Organization officials warned against calling COVID-19 the “Chinese virus” as U.S. President Donald Trump has done, saying that it could unintentionally lead to racial profiling.
“‘Viruses no know borders and they don’t care about your ethnicity, the color of your skin or how much money you have in the bank. So it’s really important we be careful in the language we use lest it lead to the profiling of individuals associated with the virus,’ Dr. Mike Ryan, the executive director of WHO’s emergencies program, said at a press conference Wednesday when asked about Trump’s comments inciting violence against Asians.”
We don’t need no stinkin’ Thought Police
Note to Dr. Mike. Cheap shot, doc. And what does this have to do with anything? We don’t need your PC terminology recommendations or your condescension for that matter. Stick to dealing with an international health crisis. Leave the politics to the politicians, even if your organization prefers not to.
President Trump said as much, when badgered about why he insists on calling COVID-19 “the Chinese virus.”
“‘Because it comes from China,’ Trump said to the reporter who asked him that question. ‘That’s why.’”
Pah-dump! Right answer.
The great 2018 influenza pandemic that killed millions has always been known as the Spanish flu, since that’s likely where it started. (Although some revisionists like to claim it started in the evil US, somewhere in Kansas, believe it or not.) I recall years ago that we had a “Hong-Kong” flu, that first showed up there, then traveled over here. I remember it because I came down with it.
Don’t like the names of countries getting appended to where they first discovered a disease? Well then, how about Legionnaires’ Disease, a subspecies of pneumonia that was initially discovered in Philadelphia during an American Legion convention at a hotel in Philadelphia. Some Legionnaires later quarreled with the nomenclature, but it stuck. But “progressives” seem to have no problem with this. Probably because it has to do with our military veterans. Meanwhile, as for the scientific name attached to the bacteria associated with this disease: Legionella.
Where did the “novel coronavirus” first show up?
The current “novel coronavirus” first showed up in the Chinese city of Wuhan. Therefore, nearly everyone in the media and everywhere else initially employed the term “Wuhan coronavirus” to distinguish this new strain from related coronaviruses. Big deal.
Well, it wasn’t a big deal until the Chinese started hassling American media stationed in China about the nomenclature, preferring to launch a rumor that the disease started in the US (maybe in Kansas?) and was carried by US troops abroad.
Charges of racism are increasingly and transparently bogus
It’s all the usual Chi-com propaganda. Trump is not a racist. Nor am I, even though I still identify this disease as the Wuhan coronavirus. Turn the page, and give it a rest. The Wuhan coronavirus is here and in Europe. And measures to slow its spread are starting to wreck Western economies and Western stock and bond markets as well. The disease was discovered in China, which initially botched its approach, failing to be transparent about the potential international threat. Lefties and commies don’t get to screw with the First Amendment. Or the facts.
End of sermon. And back to Mr Market and today’s selling panic.
Stay tuned. Judging from current market patterns, we’ll get a nice up day on Thursday. I think. Then another selling panic on Friday. Maybe. The good and very bad days seem to alternate. And the bad days are always a lot worse than the good ones. The end of this nonsense all depends on whether the machines have run out of ammo and / or whether the socalled cable TV journolists (not a misspelling) will continue namecalling rather than reporting the facts.
This game is getting tiresome. And expensive.
– Headline image: Smilodon californicus and Canis dirus fight over a Mammuthus columbi carcass in the La Brea Tar Pits. Out of copyright, this public domain image via Wikipedia entry on the La Brea Tar Pits. Note: as of this writing, the Tar Pits and museum, located in Los Angeles, are temporarily closed due to precautions being taken to limit the spread of the Wuhan coronavirus.