Risk On

Good News Regarding Gilead Virus Drug;

  • U.S. HEALTH OFFICIAL FAUCI SAYS DATA SHOWS GILEAD DRUG HAD BENEFIT IN REDUCING THE TIME TO RECOVER FROM CORONAVIRUS
  • *FAUCI SAYS GILEAD STUDY `QUITE GOOD NEWS’
  • *FAUCI: DATA SHOWS REMDESIVIR `CLEAR CUT’ POSITIVE EFFECT(BBG)

Sobering News from Muhammad El erianm;

Worse than expected drop in US Q-1 GDP — at minus 4.8% —is indicative of the huge economic hit. With the shut down not reaching critical mass until the start of the fourth week of March, quick back of the envelope calculations suggest the Q-2 contraction could be as large as 40%

Weekly EIA report Bullish as Gasoline stockpiles dropped vs expectations of A Build,Oil build less then Expected also providing fuel for the bulls. More fuel ,four US oil companies will collectively cut oil production by 300k a day in May and June ,Russia said it will cut 2 mln barrels a day of production under OPEC deal,believable or not June Oil +29% Brent +11%

WSJ running a handful of articles regarding the increase in number of accounts on retail trading platforms.The no fees ,the ” if it’s free for me “thinking has caused this surge from WSJ

TD Ameritrade said last week that retail clients opened a record 608,000 new funded accounts in the quarter ended March 31, with more than two-thirds of those opened in March. E*Trade saw a net gain of 363,000 accounts in the quarter—a company record—around 90% of which were retail. Charles Schwab Corp. reported a record 609,000 new brokerage accounts in the quarter, including individuals’ self-directed accounts and those managed by financial advisers.”


From reports I know lots of these trades were in USO and other leveraged oil Funds.I don’t know for certain but the 3x long nat gas ETN saw a record Volume day on Monday maybe just a coincidence.

FOMC decision today Maybe a change in IOER,Fed may also move to a Monthly QE amount instead of weekly amounts.If so pay attention to where on the curve the Fed will be buying.MS believes more focus on longer maturities as Short end will continue to see an increase Auction size. Q&A portion will likely see questions on Feds tool box,negative rates,yield curve control.

Risk on Continues due to Gilead news,Scorecard:

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