Kill the Golden Goose this time? No.
US economy and European worries are driving these down turns in the stock market. Will this be the end of stock market ? How much selling can go on?
I don’t have the answer for the last question rest of them are in the video you can watch.
The big money is fixated with Greece problem where European Central Banks have stopped providing liquidity and Greek debt woes have started spiraling and that is going to be dealt sometimes in the future and Greece may be excluded from Euro zone, but who knows.
Apart from that, the banks who have harvested the financial crisis at home have the same tentacles in Greece. The same banks also drive the stock market and when they are in angst and worried they know one thing : Sell everything. They start tossing toys out the windows like a 2 year old would and pee and potty all over like a temper tantrum psychotic kid.
I have seen this time and again. This happened during Congressional hearings on Hill in April 2010 and the infamous Flash crash in May 2010, than during the passage of Financial Reform bill in August 2010 and lately last year in August during debt crisis and subsequent downgrade of US credit.
But remember they never kill their Golden Goose. If that was the case the sky scrapers in lower Manhattan would be empty and weeds growing around Wall Street.
Replay the video and take a deep breath. The market is extremely oversold and the McClellan Oscillator has reach -300 and that is where previous bounces have come and that may be so. The key here is not sell in a panic mode as they want you to capitulate ! Once you sell the loss is permanent and most of us won’t have the will power to get back again and would walk away dejected and swearing into the sunset. if one has to sell, look for a bounce and sell into the highest possible number.
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