by Chris Vermeulen
The Technical Traders
As the world reacts to the global economic slowdown because of the COVID-19 virus event and the massive stimulus programs and central bank efforts to support the global economy, investors still expect weakness in the US and foreign markets. We believe this expected weakness will not subside until news of a proper resolution to this virus event is rooted in the minds of investors and global markets.
Hong Kong and China are currently concerned about experiencing a “third wave” of the COVID-19 virus within their society. As the economies open back up to somewhat normal, people are very concerned that a renewed wave of new infections will suddenly appear and potentially result in another shut-down event or infectious cycle? We believe all nations are watching what is happening in Hong Kong and China as they attempt to reopen their economies.
The rest of the world is still battling the rising infection rates and dealing with the economic shutdowns that have brought the global economy to its knees. Europe, Japan, Canada, and the US are all experiencing vast disruptions to their economies and commodity prices and demand expectations are collapsing as a result.