Tax Day is usually April 15 in the United States, but like so many things, has been postponed due to the pandemic. During normal times, many people will take the money they’ve set aside for taxes, invest it and then pull those investments around the end of the first quarter. Of course, these are not normal times.
In fact, in this crazy market, nobody is pulling investments. The U.S. dollar also hasn’t been doing so hot these last few months. Remember March, when everything was going nuts and the greenback was rising because everyone was liquidating all their investments?
Well, the opposite is happening now, and in this chart we can see each month represented by a single candlestick. March’s candle is a rather conspicuous Spinning Top, but the dollar has been falling pretty steadily since then.
And why shouldn’t it fall? After all, holding dollars is no fun when assets are mooning. Goldman Sachs just delivered a huge earnings beat, with much thanks to market volatility attracting lots of trading activity.
As we look forward to Netflix results after the bell, the time is right to ask the question: How will this earnings season affect the markets? Only time will tell.