The SEC needs to contain the coding issue, a lot less companies are going public, by 2030 there will be less then 2000 public companies in the US guaranteeed. PE/VC Routes are the way of the future it seems. If they do not contain the Trend Following Algorithms who are trading 90%+ of the market, there will be a lot less money in the market, rich money will invest more in Real Estate and Private Equity's. The more choppy and acts of randomness arise, the more investor confidence will go down, dumb money quant firms have been closing, hedge funds closing due to low performance and investors pulling money out. Being a master of making money in a bull or bear market is clutch, good options traders will always be alright but eventually cnbc and co will run out of excuses on why there was a vicious sell off caused by news driven algo's who lose money, hopefully sooner then later these useless firms lose investor money and logic conquers once again, instead of Trend Following. It is a bit easier making money with dumb money Quants dominating the landscape, but very bad for overall aspect of trading/investing in the public market. Oil prices you pay at the gas are decided by codes written in C++ that lose the marbles off a trump tweet, it is not fair for your average consumer. You think public companies want to lose 10 % of there market cap in a day with absolutely no explanation why ?
%% Jim Cramer blamed it on computers + 200dma. Must not the the trade deal; that was the reason given , by media for the big up week + big down week LOL.
Once 2600 on the s$p breaks it's all downhill from there!!! Only 3% more to go and in this market volatility it can happen in only an hour !!!
I might need to put my Tin Foil hat on, but is it possible one of the big boys that was selling a lot of PUT options, pump faked the Government into submission with yesterday's massive cancelled orders before Market open, effectively guaranteeing a rally for December but putting fear in them ? How it happened, and timing of it is extremely suspect... I think Christmas came early if you made plays according to December rally. It shook Jerome and he has nothing but " excellent " news in his speech today, trump has tweeted twice in 24 hours about talks with China are going very good, and lastly trump camp is gonna remove Steel and Al tariffs on Mexico and Canada to import quota's, hopefully announced later this month... Nothing but absolute blissful news for December
%% Most likely; + could pause @$250 area[SPY] .Finished a study of bear markets. NasdaQ, DEC, bear markets tend to be much more bear trenders than SPY/S&P 500.{Defined a bear as time below 200dma, or a negative %close for the year} NOT a prediction-may go down in value.[Edit= Also i also used a weak uptrend , most of 2015, S&P500 + NasdaQ ,still down DEC, 2015.]
What's this I hear...... I guarantee no rate hike in december!!!!!! One Fed official suggested on Friday delaying a December rate hike, the first to do so St. Louis Fed President Bullard said on Friday that the central bank could delay an anticipated December rate hike. He cited the inversion of the so-called yield curve earlier this week as reason for caution when approaching future increases to the federal funds rate. An inverted yield curve is often heralded as a sign of economic recession, though the time between inversion and GDP downturn has varied widely. Thomas Franck | @tomwfranck https://www.cnbc.com/2018/12/07/fed...mber-rate-increase-then-raise-in-january.html
I can even go so far to say that trump may also forget about all this tariff talk if the market drops even further...he might just stop all talks together, that would push markets up 5% in a week! Trump is reportedly 'glued' to the stock market's fluctuations and worried he's causing them President Trump has been asking his advisors if they think the tariffs he's levied against China are causing the market's unrest over the past two months. The president has blamed interest rate hikes from the Fed for the turmoil. Jeff Cox | @JeffCoxCNBCcom Published 52 Mins AgoUpdated 37 Mins Ago https://www.cnbc.com/2018/12/07/tru...luctuations-and-worried-hes-causing-them.html
Today's sell-off is real, firms are getting out of the areas that get affected big time before the end of business cycles, and into areas that flourish before end of cycles... Mining and Material Sector is doing good, with momentum generated by trump most likely scrapping any negative news for the next few weeks to guarantee his shot at a 2nd term, you could see a serious rally in certain areas indeed. Trump's only goal at this point in his life is survival into the next election, and he knows only way for that is by boosting market sentiment, he knows a economic downturn will absolutely ruin any chance of re-election... Who ever did yesterday's play pre-market was quite smart, they brought down the Fed to there knees, nobody over there wants to be the catalyst of bad news for the next few months