COVID-19 defeated by Mr. Market already?

This blog is in response to a reader's comment: HERE.

AK says:

Hi D,

Well, like you said, Mr. Market can stay irrational for a very long time.

I always say that there is no accounting for Mr. Market's mood swings. ;p

As for what some might think of as a stock market recovery in the last few days, I think it is too early to call it that.

It will be more accurate to call it a strong rebound from a drastic and rapid plunge.

Technically, at least for the stocks which I am monitoring, the downtrends are still intact.

Also, I do not see any significant increase in volume as those stock prices rose in the last few days.






Having said this, I am not saying that it is definitely a trap for the buy and hold investors.

TA is about probability after all and not certainty.

For sure, more competent traders would have made some money in this instance.

I don't trade very much anymore as my energy is mostly spent elsewhere in another world.

Even so, I have nibbled at some stocks and increased my investments in some businesses which I am sure will continue to generate a meaningful income for me.






However, I have not unlocked my war chests to buy a lot more. 

PM Lee said that this COVID-19 crisis is going to be worse than SARS and possibly even the Global Financial Crisis.

I believe that this is the case.

I am looking at the situation and also the charts not in terms of days but more in terms of weeks and months.

Of course, I hope the crisis won't last a year or two.

Heavens forbid.

If this is going to be worse than SARS and the Global Financial Crisis, then, there is a high chance that we have not seen Mr. Market in the depths of his depression yet.

Of course, it is important to remember that AK is just talking to himself here in ASSI.

Everyone should have his or her own plan.





If you have not done so, watch this video from the Prime Minister's Office which was released earlier today.

If you are only interested in when and how PM Lee thinks Singapore's economy is going to recover, fast forward to 7:15 in the video.



"... the waves will take many, many months or more than a year or two to settle..." PM Lee.

Remember, wash our hands more frequently, practice social distancing and behave in a responsible manner.

We are #SGUnited.





Related post:
COVID-19 defeated by Mr. Market in 2021 or so the IMF says.