|Day's Range||1.1500 - 1.2500|
So far this year, it hasn’t taken much of a blow to knock investor sentiment back down after bubbling up – and that’s a good sign for stocks, according to at least one strategist.
When worries over the coronavirus shook U.S. stocks out of a period of quiet trading last week, investors wondered if the outbreak was the “Black Swan” event that would trigger a sharp decline. The sharp snapback has revived concerns among some investors that market participants are growing overly confident that easy money policies from central banks will underpin prices, despite serious risks to global growth from the coronavirus. Two deaths have been reported outside mainland China, in Hong Kong and the Philippines, prompting countries to quarantine hundreds of people and cut travel links with China.
Buy the dip in stocks and then sell the rip higher. Here’s how Bank of America. analysts explain that strategy amid the spread of coronavirus in China.
Large options trades some people have attributed to the mysterious investor known as "50 Cent" have become more profitable in recent days, as fears of the economic impact of the coronavirus injected volatility back into stock markets. Earlier this month, at least one investor bought large blocks of February calls on the CBOE Volatility Index at a price of around 50 cents each. The calls, which increase in value when the VIX rises, would be redeemable should the VIX hit 22 by late February.
Many are comparing the current coronavirus scare to the SARS outbreak in February 2003. But the stock market’s technical condition is completely different.