DailyPlay Update – March 25th, 2020
S&P 500 Market Outlook: Neutral
Market Overview: Markets jumped 8.5% today after the Federal Reserve stepped up with unlimited QE to provide liquidity and backstop the fixed income markets. Equities rallied but VIX actually ended the day higher at 61.7, pointing to continued uncertainty. Italian COVID-19 trends improved for a second day, providing a template for US and European trends to follow. Liquidity improved slightly with 55 “liquid” optionable symbols, up from just 35 on Friday. However, despite today’s strong rally, we continue to see downside risks as monetary policy cannot fix overwhelmed hospitals, millions of lost jobs and the containment of COVID-19. The worse is unfortunately yet to come and we anticipate further pain as states enter lockdown periods.
DailyPlay Update: We maintain holding our positions in AAPL, AMD, MU, SPY hedge and GLD long until we can establish that the market has bottomed.