The REAL Reason Stocks Are Plunging 10% Today

market drop

The U.S. stock market is freefalling on Monday morning . . .

Posting an 10% drop at the open.

That’s why I’m revealing the Bloodbath Millionaire Trading System. It’s a little-known trade that lets you earn huge profits – especially when it’s a market drop.

Go here ASAP – it’s FREE (and it has nothing to do with “short selling”).

As expected, the news continued to get worse over the weekend (see below). Meanwhile, the U.S. Federal Reserve responded by slashing interest rates to 0%. And Fed Chairman Powell says the he’ll spend $700 billion buying securities in the market.

But I’m not sure that’s why stocks are falling today . . .

On Friday, I spoke with a friend who is a financial advisor. He works at one of the very biggest firms – with over $156 billion in assets under management.

The day before a client asked him to “Short Sell” the S&P 500 (NYSE: SPY). By doing so, the client could hedge his portfolio against a market downturn – without having to sell stock positions (click here to profit – without selling stock short).

You know what happened? The trade order to short sell the S&P 500 at the market price was NOT executed.

That means 100% of shares of biggest ETF in the world were already sold short.

Now, take a look at the market action last Friday. The market spent most of the day up 2% – 3%. Yet in the final hour of trading the market surged to close up nearly 10%.

Short sellers wanted to cover their short positions before the weekend. And that meant they were forced to buy back their shares in the market before 4 p.m.

You can see the chart here:

market drop

The Big News . . .

Here’s the big coronavirus news from weekend.

Fed Lowers Interest Rates to 0%

The Fed dropped interest rates by another one-half point on Sunday. And the new target range for rates is 0% – 0.25%. Plus, America’s central bank will buy up to $700 billion of Treasury bonds and mortgage-backed securities.

The Fed’s actions show that the economic fallout will be huge. And Chairman Powell is trying to get ahead of the crisis. Unfortunately, this isn’t a monetary crisis. It’s a health crisis.

Only a coronavirus vaccine can actually STOP the pain in the economy and financial markets. Go here for my #1 coronavirus biotech stock to BUY NOW.

France and Spain ‘Lock Down’ Millions of Citizens

Italy has been under lockdown for a week. That means restricting travel and closing schools and businesses. Over the weekend France and Italy followed suit. The countries are rushing to get ahead of the virus that has infected over 9,000 people in Spain and 5,400 in France.

CDC Says No Gatherings of More than 50 People

On Sunday, the Centers for Disease Control issued a warning: There should be no gatherings of groups of more than 50 people. The organization warns against any large-scale gatherings. 

New York City Closes Bars and Restaurants

New York City is quickly heading toward lockdown. Over the weekend the mayor ordered the closure of all bars, restaurants, clubs and theaters. Only restaurants with takeout and delivery will be allowed to stay open. California, Illinois and Ohio took similar actions over the weekend.

Pope Cancels Easter Services

Easter services at the Vatican will be held without the faithful attending. Easter typically attracts tens of thousands of visitors to Rome. This has never happened before.

U.S. Covid-19 Cases in 3 Days

Since Friday, the number of cases in the U.S. has doubled. There are now over 3,800 cases in our country. And those numbers grossly underscore the true spread of the virus.

Johns Hopkins: Up to 500,000 Infected in U.S.

The U.S. has been slow to implement Covid-19 testing. One doctor at Johns Hopkins University estimates that there are 50,000 – 500,000 people infected in America right now. And he says they are walking around and unknowingly spreading the virus.

That’s why it’s crucial that the FDA “fast track” this coronavirus vaccine. Go here ASAP for urgent details and huge profits.

The Coronavirus Numbers

Here are the numbers from Monday morning at 9:15 a.m. ET.

  • 173,744 Infected worldwide
  • 6,680 Deaths
  • 3,806 Infected in the U.S.
  • 69 Deaths in the U.S.

What’s Next

Stocks are in a market drop in early trading today. And investors should prepare for more losses in the coming weeks.

My current target price range for the S&P 500 is 2,000 – 2,100. This is based upon S&P 500 earnings of $145 and a P/E ratio of 14 – 15.

This suggests that the S&P 500 could see another market drop of 20% before we hit bottom.

However, this outlook may be too bright. Earnings estimates may have to come down from the $145 level. And the P/E may need to be adjusted lower as well. More on this in the coming days.

If you’re “long” equities, you could prepare for more downside.

However, there is one little known trading strategy that’s delivering huge gains. And it can hand you huge profits even when stocks plunge.

It’s called the Bloodbath Millionaire Trading System.

Frankly, this may be the ONLY way to make quick profits in this market. And it has nothing to do with short selling or “betting against America.”

Go here for urgent details.

Yours in Health & Wealth,


Ian Wyatt

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