S&P 500
Dow
Nasdaq
The BBC says Trade, Tech Questions Weigh on US Stocks.
“Analysts said the sell-off in the US reflects uncertainties affecting many aspects of the economy, including a rise in borrowing costs; debate about data regulations; and trade.”
Analysts Wrong
This is not about trade, not about regulations, not about Intel which plummeted by more than 7% after a report that Apple plans to stop using Intel chips.
This is about absurd valuations across the board as the pool of greater fools finally ran out.
Mike “Mish” Shedlock.
Did you mention a book or article and the author a few days ago under this topic? I’d like to find the author’s name………
@AWC, “The psychology remains the Fed Put.” You said it! The answer to this question When will the Fed intervene? will tell you the level at which the market will bounce. The next important questions are “how effective it will be?” and “how long they can hold it up?” Funnily enough we call this free markets!
“Retail investors ended 2017 with exposure at all-time highs. Our clients were net buyers during December, resulting in one of the longest buying streaks in the history of the [index],” – TD Ameritrade
You cannot expect a very intelligent man to be bullish when central bankers are experimenting with trillions of dollars of QE never done in history before, just because 9 years passed and a market crash didn’t happen.
I think bears are happy to see some reality come back into markets, vs. manipulated inflated markets pumped up by money printing.
“Analysts Wrong”
Analyst and most bloggers are wrong. You’re right, it’s not about trade, regulations, individual stock or Stormy stories. It’s also not about valuations. Fundy’s and technicals can work during “normal” periods of time, but who thinks things are normal, or they compare to anything in our lifetime? How can we be out of greater fools when the majority of retail investors are not yet in the market?
By the midterm elections the pullback will be at least a quarter old, and the move toward new highs will be well on its way. It doesn’t take a rocket scientist to figure out there is simply no other place for global investment to hide. Do you think the big money is going to hang out in the debt of European countries, or Japan? They may temporarily think about US govt debt, at least until the pension crisis gets into full swing. If veterans and teachers think their govt has forsaken them, wait until pensioners see how much their precious govt cares about them.
BTW, the stampede into stocks will not be the fault of the Fed, buy backs, or anything else that distracts people from the true culprit – govt malfeasance and self-interest. Global investment swamps all other factors, and these people know first hand that the emperor’s have no clothes or souls. Socialism is dying with the popping of the govt debt bubble, which leaves the collateral of the private sector as the only fox hole big enough and deep enough to absorb the $85 trillion in liquid investments.
link to armstrongeconomics.com
Dip to buy…calling ALL Dips to buy!
My daily chart did not stretch and I did not see it when posted. But I do think it is over
@Mish you know that Trump was elected on Nov 8th **2016** – at the time the Dow was in the low $18K and the S&P was in the $2100 range … there’s still quite a bit of room to go. I certainly would NOT call the Trump rally dead, at least not yet
Bears tend to be happy when markets revert to normal, sane valuations. i know i am.
Gas pains 🙂
This: Surrealism:
link to s3-us-west-2.amazonaws.com
link to s3-us-west-2.amazonaws.com
@Realist
Look: Realism:
Told you so. The FANG would go BANG.
I remember you saying to me Mish that it would be a two-up-sucker.
Price discovery 🙂