Thursday, October 26th, 2017

GREED or GREECE ? You tell me.

Have you seen all crimson red on your screens when the market dives 200 points? Stocks were down 2- 20 dollars everywhere. VIX shot up 5 points and major indexes crushed under huge nasty selling programs. What a unified effort that must have been? Indeed.

Just about 11:00 AM when the SPX was moving higher Senate hearing on Goldman Sachs started, and there was no looking back. All major indexes turned crimson red and started dropping heavily in a nasty sell off. Some will say it was Greece and the European debt problems but those news came later, and that’s a lame excuse, as anchors at CNBC have spouted. Those events in countries the size of Rhode Island wont buckle US markets 200 points in a steep decline. This was a direct impact of Wall Streets temper tantrum :It was Wall Streets way of saying ” How dare you put us in the hot seat in front of cameras in an oval room and strip us naked ?”

As a direct consequence, SPX was slammed 28 points, NDX suffered a humiliating 42 defeat and everything under the sun was sold off, except, Goldman Sachs own stock GS which stayed green throughout the day as if Union Jack flying on a newly conquered territory! The stock even gained 1 point to boot! Talk about solidarity and kinship. The stock ended the day at 152.98 in green.

But the Congress and US Government cares less if you sell the market off or not. They will do what they have to do and put the screws tight if there is one needed to be tightened. Senate gives a hoot about day to day fluctuations of the markets and its so immature when the mood on Wall Street turns sour and they start selling off their own assets, only to come back later and pick it up. Its like a 2 year old, that throws temper tantrums and throws the toys out the window and later picks em up and plays with them. Its a scenario we have seen time and again and there is nothing new in this. You just have to dig in the archives of this sites in 2010 and see yourself extensive write ups.

The more the Senate hearings continue the worse it should get. You haven’t seen selling yet, this temper tantrum can accelerate into changing market direction from an uptrend to a downtrend if enough damage is done to the charts in ensuing days. The Senate is trying to prove that GREED went too far, it toppled our real estate market, and than killed our economy to a point where it was intolerable. Lawmakers are bent upon hanging a few of those who profited from it and gloated what they were doing.

In the end its about GREED and not GREECE.

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