Market reaction to " corona virus "

Corona Virus played havoc with world stock market, everyone trying to understand as to why?????

A little perspective may calm few nerves.....

Market was extremely overbought and ignored Corona Virus in first two weeks and kept making new all time highs....

Corona virus casualties so far is low thousands and infection may be less than 100, 000 worldwide..so far....

Corona Virus is being blamed for market collapse and relentless selling...

I will allocate only 30% blame on Corona Virus which became a factor after being extremely overbought in the first place...

NO I am not undermining economic impact of Corona Virus which has taken world travel & congregation to new low point......

BUT IF we look @ some hard facts......

Death due to other ailments whose cure is still missing......like some cancer far outweighs current fatalities even on a daily basis worldwide.....

THUS...we need to take a "deep breath "

We must thank Chinese Government for taking such a "pro active " role in shutting down cities and completing a brand new hospital in 10 days in WUHAN...all to contain this virus.....

All affected / afflicted countries are all taking extremely pro-active actions to deal with Corona Virus....

All this coordinated actions must / will show results before it is too late....

SO....need to calm down and gather focus in going about daily lives....

Common sense approach like washing hands when in contact with any dirt / dust / dirty things needs to be done without exception....

Good hygiene cannot be over emphasized.....

NOW...back to market.....

SO MANY stocks are beaten down that it may not be a bad idea to keep adding as we build our confidence with this TAPE....

SOX made its turn UP on Friday.....

Gold made its U turn on Thursday with severe pounding on Friday....

VIX hanging on to its last breadth....southbound is the journey...

SO....relax and focus on TAPE and look for opportunity to make money.....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed