B

lack Gold Is plummeting creating a Black Monday for markets.

After not reaching an agreement this weekend between Russia and Saudi Arabia, oil had plunged over night to around 30$ a barrel, down 20%. This drop, combined with the Coronavirus crises is beating up stock all over the world.

Asian markets closed down around 5%, while European markets are still trading and have even bigger losses between 6 and 7%, while Italy is down more than 9.5%.

Meanwhile US futures stopped trading after hitting the 5% threshold, and right now you cannot buy futures until they get back in less than 5% territory or after the open.

I have been writing every day about buying PUTs and not buying stocks and it is getting boring to repeat myself every day, but it is getting much more serious. I was so upset last Friday when I saw that artificial move to the upside at the end, same as last Friday, just giving false hope and misleading the broad public. In times like these you have to ask yourself what positive news is coming tomorrow and what negative news is coming? If there is probability of more bad news the markets will go down, it is a very simple fact. And for the last two weeks, if you are doing this analyses you would see that there are no good news on the horizon and the bad news cycle will continue for some time. To be honest, this oil debacle wasn’t something to anticipate but it just adds more fuel to the fire.