(For What It’s Worth)
As I have been saying on the show repeatedly, “The possibility for something to come out of left field and startle this market needs to be on the watch for – more now – than ever.” That “now” may have just taken place.
As I’m typing this (approx. 9:00pm ET Thursday evening) the Democrat controlled House of Representatives just passed on a strict party line vote (i.e., not one Republican) a $2.2Trillion stimulus package. What this signals is that there will be no, repeat, no forthcoming “free money” of any type to anyone. This along with the forthcoming jobs number due before the U.S. markets open has the possibility to upend any current perceived sense of calm.
Remember: The “markets” have been ultra-sensitive to any stimulus talks over the last day or so, spiking up when it looked like a possibility and falling sharply when talks broke off. Those rises and falls have been sharp and sudden, but in relationship to the overall picture have been somewhat muted in severity. This now very unambiguous “There is no stimulus, and there won’t be any!” vote, I believe, will now be acted upon in earnest.
As always, we shall see. But if we do? I think it may be as soon as tomorrow.
We’ll discuss this and more on Friday’s show.
See you then.
© 2020 Mark St.Cyr