What Happens as State and Local Tax Revenues Crater?

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We can anticipate a federal bailout of pension funds and one-time aid to state and local governments, but bailouts won’t repair the eroding foundations of tax revenues. As we all know, the federal government can “print” money but state, county and city governments cannot. The Treasury can sell bonds to fund deficit spending, and the Federal… Read More

The Shortage Of LBMA Bars Persisted Before Coronavirus

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I found it amusing that Zerohedge tried to take credit for reporting the problem of a physical gold shortage on the LBMA and Comex earlier last week. Several of we “gold bugs” have been discussing and reporting on this issue since before the virus crisis exploded. The Comex has been settling contracts that stand for… Read More

The New (Forced) Frugality

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There are only two ways to survive a decline in income and net worth: slash expenses or default on debt. In post-World War II America, the cultural zeitgeist viewed frugality as a choice: permanent economic growth and federal anti-poverty programs steadily reduced the number of people in deep economic hardship (i.e. forced frugality) and raised the living standards of those… Read More

The Financial System Was FUBAR Before The Virus Crisis

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“If you infuse Keynes’ economic and monetary theories with LSD you end up with MMT (Mondern Monetary Theory)” While the coronavirus to be sure is the “black swan” that pricked the stock bubble, market forces eventually would have accomplished the same result. The Fed started bailing out the banking system in September, printing half a… Read More

Sunshine and Rainbows or More Selling Ahead?

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Another wild week in the market ends. There’s been trillions of dollars pumped into the market by the Fed and now fiscal stimulus. Will the government be able to save this market? In this crucial weekend video newsletter update we look at a few strange happenings in the market you need to be aware of.… Read More

Biggest 3 Day Rally Since 1931

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Another Huge Rally The stock market has been on a rampage. It’s now up about 19% from the trough on March 23rd. Dow is up almost 23% which catalyzed the Wall Street Journal to say a new bull market is here. It’s unlikely that 3 days of rapid gains makes a bull market. Even if… Read More

Record Jobless Claims (30 Sigma Event)

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Where Will Earnings End Up? Some investors are completely ignoring where 2020 earnings will be because recessionary earnings are a temporary dip. Other are calling for the end of the world because earnings are crashing. Some are in between. We should be looking closely at earnings. It gives us a guide as to how low… Read More

The 20 Day EMA Smackdown in Play

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Despite deeply oversold levels in some stocks – like cruise ships and airlines – opportunities exist for very aggressive traders.  In today’s video, Corey updates you on prior opportunities and the specific “20 Day EMA Smackdown” event happening right now in the SP500 along with some major stocks following the market on the current oversold… Read More

Stocks Stabilize On Hopes Of Fiscal Stimulus

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Markets Are Normalizing Markets are finally normalizing. That sounds weird because the 1 month and 3 month treasury bills fell to slightly negative yields. However, it’s because Wall Street is starting to get its arms around COVID-19 and markets are moving less wildly. VIX was actually up on Wednesday as it rose 2.28 to 63.95.… Read More

Fed Saves The Day

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Beginning of Earnings Season The start of Q1 earnings season has been good because the firms reporting earnings ended their quarter at the end of February. They barely had any impacts from COVID-19 in their reports. This would have been a great quarter for firms if COVID-19 didn’t spread widely. With the first 14 firms… Read More

Quintessential Bear Market Rally?

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Stocks are making violent moves in both directions as the news drives trading. Don explains the kinds of things we see in a bear market rally, what to expect next, and which stocks he sees the most opportunity in… The post Quintessential Bear Market Rally? appeared first on Theo Trade. Source: First Rebuttal

Biggest Dow Gain Since 1933 (5th Biggest Ever)

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Insane Tuesday Rally This market never ceases to be interesting as COVID-19 has caused a huge spike in volatility unlike anything most have in our lifetime. This is similar to 1929 except this won’t lead to an elongated depression. It’s possible that Q2 GDP growth is worse than the Great Depression, but there will be… Read More

Everyone Is Buying Groceries & Holding Chinese Stocks

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Absolute Madness At Grocery Stores Sales at grocery stores and companies that sell products and services that help people work from home are experiencing hyperbolic demand. Their products and services are like an inverse chart of the Dow in the past month. This is like if the entire country was about to experience a snowstorm… Read More

The Pandemic Is Accelerating the Breakdown That Began a Decade Ago

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The feedback loop has reversed: by saving more, people will spend, borrow and speculate less, draining the fuel from any broadbased expansion. In eras of confidence and certainty, people save less and spend more freely. When we’re confident that good times are not only here but will continue, we not only spend more freely, we’re more… Read More

Planning Your Trades from the Current Profile Levels

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We saw a deeply oversold market beneath key Volume Profile Levels snap back to life with a huge bullish up-day today.  In tonight’s video, Corey highlights what happened, where we were, where we are now, and how to use the Profile Levels – now and future – for better planning of your intraday and swing… Read More

Fastest 30% Decline Ever

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Another Selloff Even though this has been a painful selloff, Monday’s decline was the first back to back selloff in a while. The market had alternated between red and green days for 7 days. It’s now down 33.9% from peak to trough, making this the 5th worst bear market since 1946.  As you can see from… Read More

Unemployment Rate Could Spike To 12.8%

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Extreme Negative Events Being Priced In Good news is everyone knows the Thursday jobless claims report will have well over 1 million claims which is the most ever by far. Bad news is it will likely happen. This negative event is probably priced in, but it’s still potentially the worst hit to the labor market… Read More

How Much Damage has been Inflicted Upon this Market?

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Stocks continue to be highly volatile even after the Fed took unprecedented action this morning. Major sectors of the market have been decimated while others are out performing. Here are the risks and the opportunities you need to be aware at this crucial point in the Corona Crash… Join me on this free webinar “The… Read More

Helicopter Money: Short-Term Relief Won't Cure our Financial Disease

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The collateral supporting the global mountain of debt is crumbling as speculative bubbles deflate. A great many freebies are being tossed in the Helicopter Money basket. That households experiencing declines in income need immediate support is obvious, as is the need to throw credit lifelines to small businesses. But beyond those essentials, the open-ended nature… Read More