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WHAT DOES CORONVIRUS MEAN FOR YOUR STOCK INVESTMENTS?


WHEN IN DOUBT GET OUT!

Our GREENMARK 101 algorithm flashed three major sell signals on February 7th, 12th and 20th respectively for "across-the-board selling of-long position, except gold stocks."

(Data on these events were available by emailing this site or info@fjcannabis.com)

Global financial markets saw some of the sharpest falls in years on after a rise in coronavirus cases renewed fears about economic slowdown. In the US, S&P 500 posted their sharpest daily declines since 2018.

Use S&P 2922 as interim support, if declines key near-term support is S&P 2613. Use these numbers to determine exit points.

In contrast, the price of gold, which is considered less risky, hit its highest level in seven years at one point.

TAKEAWAY

  • Coronavirus spread raises fears of pandemic

  • Coronavirus credit crunch hits Chinese firms.

The moves came as the outbreak continued to spread outside of China, with Iran, South Korea and Italy reporting a surge in cases.

About 77,000 people in China, where the virus emerged last year, have been infected and nearly 2,600 have died. More than 1,200 cases have been confirmed in about 30 other countries and there have been more than 20 deaths. Italy reported three more deaths on raising the total there to six.

"There has been so much complacency in recent weeks from investors, despite clear signs that China's economy is facing a large hit and that supply chains around the world were being disrupted," said Russ Mould, investment director at AJ Bell.

"Markets initially wobbled in January, but had quickly bounced back, implying that investors didn't see the coronavirus as a serious threat to corporate earnings. They may now be reappraising the situation."

The losses on the Dow and S&P 500 in the US wiped out their gains for the year. Firms such as Nike, Apple and Walt Disney, which do major business in China and rely on it to make goods, were some of the hardest hit, with shares down more than 4%.

Travel companies also continued to suffer. In the UK, the biggest faller in the FTSE 100 was EasyJet, which sank 16.7%, while Tui and British Airways owner IAG were both down by more than 9% at the close.

WHAT'S NEXT FOR CANNABIS INVESTING?

Public companies without an effective Business Models should be immediately liquidated. Look at our pages for candidates. Don't ask a broker, because his losses maybe greater than yours.

.. if your powder is dry.

NOW IS THE OPPORTUNITY TO INVESTIGATE SUPERIOR BUSINESS MODELS IN THE CANNABIS SPACE.

... next article due 2.26.20


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