Coronavirus Leads To Panic Selling – Will We See A Market Bounce Today [Answer]

In my morning comments I referenced the Coronavirus as a potential problem. Many of you are asking yourself if this market decline is for real and you are wondering if we might see a bounce into the close. Here are some reasons that I don't think the market will bounce today. Are stock valuations so compelling that Asset Managers don't feel like they will have another chance to buy stocks? No. At a forward P/E of 18, stocks are at the upper end of the valuation range. Earnings season has barely started and the results have been good, but they will have to be exceptional for the market to move higher. Is the Coronavirus really that dangerous? We don't know for sure. What I do know is that there won't be a cure for it this weekend. I also feel that we won't have news that it is contained this weekend. It is likely to spread, but we don't know to what extent. We also don't know how dramatic the impact will be on the Chinese New Year. This is the biggest holiday of the year and it will definitely have an economic impact. 40 million Chinese citizens have travel restrictions. On the bearish side, we could learn that the virus is spreading quickly and that it has surfaced in other countries. That would certainly spark more selling. . . CORONAVIRUS WARNING SIGNS - EARLY TODAY - CLICK TO WATCH VIDEO FROM THIS MORNING

Daily Bulletin Continues...