Morning all.

I feel privileged to be reporting to you on this dramatic morning.

Some key developments:

  • 133 people in Italy tragically lost their lives to the Coronavirus yesterday. Lombardy and other parts of Northern Italy are now under a travel ban.
  • In better news, the number of new cases in China has reportedly collapsed.
  • The number of UK cases rose from 209 to 278 on Sunday.

Financial movements:

  • US Crude Oil is down 27% (not a typo) since Friday. Brent crude is down 26% at $33.50.
  • The FTSE is currently set to open at around 6065, down 6.3% since Friday.
  • The S&P is trading down 5% overnight.
  • The FTSE MIB (Italian equity index) is down 8% overnight.
  • US Government Bond Yields are hitting record lows, an indicator of bearish sentiment. 

The US 10-year yield fell to less than 0.5% (it was 1.5% a few weeks ago), and the 30-year yield fell to less than 1% (it was 2% a few weeks ago).

This morning's price action is likely to be dramatic, for obvious reasons, in the oil sector. Also worth watching are transports, hospitality and financials.

Sector indexes worth a watch:



What I'm doing

I'm fully invested, so I'm not doing anything.

Actually, there is one thing I'm doing. The FTSE trade which I opened two weeks ago is currently showing a large mark-to-market loss, so I'm making sure that there is enough collateral in my trading account to withstand these temporary losses.

I'm also thinking about what shares I might buy, when funds allow. I love looking at contrarian ideas so I'd like to study Carnival (LON:CCL) at some point, if I can find the time.




What you should be doing

I only know what I'm doing, and can't speak for what anyone else should do!

In very general terms, I do strongly believe in having a plan. If you didn't already have a plan for what you might do in a bear market, then creating that plan now might not be the worst idea. 

Even if the plan is "do nothing", at least you'll have certainty!




US Markets

Regarding the S&P, Dow and NASDAQ Indexes, it must…

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