D&D Note (6.10.2020) ~ FED Speaks “Whatever it takes as long as it takes” ~
Today was all about the FED announcement. No big surprise came and markets took a leg up following the statement release. FED Chair J. Powell began is press conference by saying they will do “whatever it takes as long as it takes.”
As the press conference continued markets reversed heading back down then paired losses at the end of the conference.
Stocks continued to whipsaw following the FED gaining and then ultimately falling into the close.
What did see strong strength throughout the day was the NASDAQ and the Mega Cap stocks. Apple, Amazon, and Tesla all hit all time highs.
Prior to the FED speaking D&D reduced risk and trimmed profits in AAPL, TSLA, TSM, and SHOP.
The VIX also whipsawed throughout the day and couldn’t fall below the 200 day moving average before bouncing back up.
The FED say they see interest rates remaining near zero through 2022. They also see GDP falling 6.5% this year but rebounding to 5% gain in 2021. The FED also made a specific statement that there is no place for racism.
DOW down -1.04%
S&P 500 down -0.53% (3190.14)
NASDAQ up 0.67%
VIX ended UNCH at 27.57
Oil up 0.21% to $39.02 a barrel.
Gold up 1.53% to $1748.40 an ounce.
In a worrying sign of the reopening of economies, Texas reports a third consecutive day of record Covid-19 hospitializtions.
Dr. Fauci says the WHO’s asymptomatic Coronavirus remarks on spread ‘was not correct‘. The WHO themselves yesterday walked back their previous comments saying there was a “misunderstanding” and “don”t actually have that answer yet.”
Global Virus cases: 7.29 million+
Global Virus deaths: 413,237+
US Virus cases: 1.99 million+
US Virus deaths: 112,513+
~ Dave James / Principal Trader and Market Strategist