CNBC reports Dow travels more than 22,000 points in one of the wildest weeks since the financial crisis.
I think that is quite a bit of nonsense, as it measures every intraday swing no matter how small.
Let’s look at thing more accurately.
DOW and S&P Trading Ranges
The above chart shows day-by-day changes in futures, rounded to the nearest point.
The weekly fluctuations are quite remarkable. 4747 points for the Dow and 529 points for the S&P 500.
The Dow close last Friday was 25520, the S&P close was 2757 so those are big percentage moves.
Biggest Momentum Swing in History
Bloomberg reports This Is the Worst Momentum Swing for U.S. Stocks in History.
“The journey from ecstasy to agony is entirely unprecedented, in the United States at least,” writes Bloomberg macro strategist Cameron Crise, who earlier noted this inauspicious achievement. “That’s the largest momentum swing in history — and it’s not particularly close.”
The next-closest reversal was a 48-point drop over the same span in 1987.
“This is perhaps one reason to expect that an eventual market recovery might not be totally straightforward,” added Crise. “Not only have ’those kids on the trading desk’ never seen a reversal like this, nobody has. How that impacts investor psychology remains to be seen.”
Expect more of the same. Stocks are insanely overvalued.
Mike “Mish” Shedlock
http://obatperangsangmanjur.net/
Sounds interesting. Can you post some links, where is a good place to look, vice.com or where? I know back in the crash in the war with the Serbs in Bosnia, ammo was better than cash. You could buy anything with ammo. (I’m not sure what kind). Might give good ideas of what to stock up on.
This type of analysis & reporting drives me nuts. Points are meaningless, only percentages matter!
Here is a comment I picked up from an article about RMG: “If you want gold buy gold, not promises of Gold. The UK is already selling fractional reserves of gold at 10 to 1, now they suddenly are selling more? Go get a bar or necklace or something.” https://www.newsbtc.com/2018/01/31/uks-royal-mint-create-gold-backed-cryptocurrency/
Bitgold is audited and spendable and linked to a debit card.
If you want gold, buy gold. What is the point of cryptos backed by gold? What if the alleged backing isn’t there? What if the crypto is hacked? This is nothing but “me too” madness to take some piece of the action
Sounds like you’ve been reading Martin Armstrong.
“That’s the largest momentum swing in history — and it’s not particularly close.” 10+% practically straight down, in the midst of a parabolic spiral.
Derivatives are in play. That’s what you have got with index funds, ETFs issued by Vanguard and Blackrock, VIX and XIV bets, leverage, carry trade, and cheap credit.
@tedr01
Markets where many bigger actors may have their hands forced by covenants, regulations and leverage limits, are generally favorable for hedge funds. As is a bit of unpredictability and chaos.
Both because they open up for strategies that specifically target and exploit the predictability of the covenant/regulation driven responses many of the bigger players are forced to make, and because the average hedge fund investor can afford a longer timeline and higher variance/volatility.
Doesn’t mean they’ll all do well, but they haven’t exactly been overjoyed with the past few years’ flight to low cost indexing, either.
Replying to AWG the RMG coin will be just like bitcoin but with the wallet features and backing of gold. It will exist both as a spendable coin or an investment to hold. It’s different than GLD because you can hold it in your own wallet and spend it OR trade it OR store it any way you want. Now granted you have to trust the institution to actually hold the gold for you but according to the royal mint you can receive actual gold anytime you want.
I’ve been betting against the stock market for at least 15 years. All my money is in corporate bonds. The price fluctuates, but who cares. I buy low, and hold. All I do is make money every month from the dividends.
Gold will go higher when govt confidence collapses, which will accelerate in the US when more muni’s start renigging on their pension promises. This occurs when rates rise and forces the interest expense into the light of day. This also means govt’s can’t sell their debt, and the sovereign debt crisis spreads, which means stocks become the safe haven for the big money (global investment). Gold is for the individual. The flows of global investment swamps anything the Fed will do, and it’s 10 times the size of global trade. This coming collapse in govt confidence is also the driver behind cryptos.
And despite all the market gyrations, gold fell to 1314.50.
Sorry such bad grammar. The jist is, it’s blockchain gold. Why wouldn’t companies issue stocks directly to consumers and use decentralized exchanges next? Why do we even need them anymore?
Mish, RMG coin is coming. What’s your take on that or any cryptocurrency that backs itself with gold? That’s a coin that will be issued directly from the royal mint. What about silver or other pm’s each block will be attached to a bar and be convertible physically. We may even get rid of comex all together especially if they decentralize trading. If it becomes crypto in converts to other coins easily and gold will be spendable again. What are your thoughts?
And add quantitative and computer selling to the mix and there you have it.
like bonds,central banks have taken complete ownership of the dow,they decide if and when markets go up or down,it’s beyond rigged
If the 1987 one-day drop occurred today, it would be about 5,467 points. Hold my beer.
I expect to see many hedge funds returning investors money or just flat out going bust in the coming weeks, especially if they are not gated hedge funds. Ouch.
“Same as it ever was”…”Expect more of the same”…same difference.