Stocks Have Worst Week Since Financial Crisis

Trading on Friday opened much like it had the rest of the week, down. And that was really no surprise as fears over the coronavirus, and its impact on the economy continue to scare investors. As we head into the close on Friday, stocks will have their worst week since the 2008 financial crisis.

The DOW was down more than 600 points after plunging 1,000 points in morning trading and down -2% on the day. The S&P 500 fell -1.5%, while the NASDAQ fell -0.7% after sinking more than -3% earlier.

So what does the worst week since the financial crisis look like? Here are the weekly numbers for each of the instruments that I track.

Weekly Losses: S&P 500 -13%, DOW -14%, NASDAQ -12%, Dollar -.9%, Gold -4%, Oil -16%, Bitcoin -12%

With the fast slide this week, all three indexes triggered both the red weekly and red monthly Trade Triangles, indicating that we are now in a widespread, long-term downtrend. The DOW suffered its biggest one-day loss on Thursday when it lost -1,190 pts on the day.

Shockingly gold, typically a haven asset, has come under severe selling pressure today selling off -4% to the 1,573 level. Why the sell-off? Most likely, it's profit-taking by the futures markets. Look for gold to rebound next week.

Crude oil has plunged to its lowest levels in nearly 14 years, trading below $45 a barrel. However, there are signs that OPEC and its allies could be nearing agreement on action to stem the rout before meeting in Vienna next week. Saudi Arabia is now pushing for collective OPEC+ production cuts of an additional 1 million barrels a day in hopes of stabilizing the prices.

Much like the stock market, Bitcoin was off to a strong start in February. Still, just like the stock market, it has fallen ill with coronavirus fears shedding over -12 on the week triggering a new red weekly Trade Triangle entering into a sidelines position.

Key Levels To Watch Next Week:

Every Success,
Jeremy Lutz and

One thought on “Stocks Have Worst Week Since Financial Crisis

  1. I think, nothing surprising about massive selloff, Market Pundits and Media may try to link this with as "Corona Effect", but actual reason is, or we may like understand this, simply as most awaited as well deadly essential correction taken place.

    One should try to find answer of one very common question like"is it possible that each and every markets like Stocks, Oil, Precious Metals etc. can go up....up.....and up.... continuously?

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