Why did the markets rally on March 19? That is a key question we need to ask ourselves.

At that date, there was only one news from Fed: the Fed announced that on top of its standing U.S. dollar liquidity swap lines with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank, it would be opening up “U.S. dollar liquidity arrangements (swap lines) with the Reserve Bank of Australia, the Banco Central do Brasil, the Danmarks Nationalbank (Denmark), the Bank of Korea, the Banco de Mexico, the Norges Bank (Norway), the Reserve Bank of New Zealand, the Monetary Authority of Singapore, and the Sveriges Riksbank (Sweden).”

This liquidity swap line are only available for 84 days. 11 June 2020 is a key date. If Fed does not announce that it will cancel this swap liquidity operations or extends it, 11 June 2020 will be the first time that markets will react rationally.

TLDR: calls will print until June