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COVID-19 HYSTERIA VS 10-DMA HISTORIC OVERSOLD. IF WE DON'T RALLY WED, THIS IS DOUBLE NOT NORMAL

Equity markets sold off Tuesday, despite the 'surprise' Fed cut -- and while many suggested this meant the cut was ineffective, think about Fed action for the past decade.  The initial market reaction is not the ultimate market reaction (and given the effect on the yield curve, it should be ultimately positive).Still, Tuesday's continuous weakening and nearly 1,000 point drop in the Dow Jones further got more investors to focus on the worst case scenario -- that either (a) solution to COVID-19 requires governments to resort to a form of Martial Law, which drives the world in recession, or (b) COVID-19 becomes pandemic and kills consumer confidence sufficiently to drive a recession worse than 2008.These are plausible outcomes, but hardly the central case.  Consider other outcomes:- Vaccine or treatment is developed; - New forms of hygiene are imposed such as 'washing stations/disinfection stands' required to enter any public venue, ala how metal detectors are the norm today;- Social distancing works -- in the US, many are taking this proactive measure;- Spring weather comes and the disease could burn out;The point is, the central case, is not necessarily pandemic, but investors are increasingly positioned for that.POINT #1: SELLING EXHAUSTION--LOWRY'S DATA SHOWS S&P 500 SP...

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