The market is all about technicals now. The real buying will only come once the virus is contained or Fed goes all in, as China seems to be willing to do so at all costs.
This rally is not new.
If applied to derivatives as has been suggested, the tax would eliminate most speculators and liquidity would implode.
With central banks cutting rates aggressively and China and the U.S. pumping even more liquidity, be careful of being too bearish.
The PBOC is taking measures to make sure the economy is insulated from any long-lasting effects from the virus slowdown. But how much ammunition does China really have?
We are currently witnessing both markets stretched to extremes.
There is no way economic costs won't be felt from the coronavirus, but stocks are acting like the economy is booming.
And that is exactly the problem for commodities as the Wuhan coronavirus rages through China and beyond with no clear end in sight.
After all, it is nearly impossible to find a positive analyst on natural gas or oil.
All stocks related to global economic growth, especially China, will get hit as expected demand is perceived to be hit.