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Daily Option Trading Commentary

New Data Suggests That Coronavirus Impact Will Be Great - Don’t Buy This Market Bounce

February 25
Posted 9:30 AM ET - Yesterday the S&P 500 fell more than 100 points, taking out major technical support levels on heavy volume. The Coronavirus is spreading to other countries and the economic impact could be greater than expected. At a forward P/E of 18, stocks are priced for perfection. This event could have a dramatic impact on earnings and investors are taking profits after a big market run-up the last few years. The growth rate of Coronavirus in China is starting to decrease, but the recovery is slow. Coal demand for power plants was down 45% year-over-year on February…

 

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