Wednesday, January 18th, 2017

Politics not economy is dictating trading

There is a battle going on between Obama and Wall Street. Market has been down past one week since Obama spoke about curbing  high risk trading and new banking regulations.

obama-state-of-the-union1

Wall Street is no stranger to temper tantrums. When cornered from greed and wayward means of achieving gains it blusters. It blusters in the form of low level temper tantrums and it starts with selling off everything  in sight. Coming on the heels of Presidents State of the Union Speech January 27, 2010 market action on the morning of Jan 28, 2010 is another angry outburst from Wall Street.

This time Technology stocks were crushed and sold off . Stocks that have stellar earnings and new products and so many good news. Nasdaq was one of the indexes that was spared in this latest temper tantrum , but not any more. In just about 60 minutes the index was down 52 points in a relentless whopping  sell program ! That was Wall Street’s State of union Speech to the American public.

I remember in 2008 when the market bailout failed in Congress same thing happened,  markets dropped 777 points ! These were the same people who created panic back than. There was a show of force and resentment towards Congress. In those days under Bush & Cheney trading rules were so lax and easy that markets could be shorted, without borrowing assets, and hence it resulted in great swings up and down the NYSE board.The volatility was incredible.  $VIX was in the 80 s.  Back in 2008 all you have to do, was flip the switch, and watch mom and pop traders squirm like worms in a tin can.

Well those days are gone. The fundamentals have changed. Economy is improving, earnings are very good, and the tide is rising . Its not that we are out of the woods, but Obama administration despite all the obstructionist politics has done a remarkable job. Ben Bernanke has been crucial in pulling us out of the brink of second Great Depression that would have started in 2008.

These days there are more good news than bad. Major stocks have plastered stellar earnings this season, $AAPL $ GOOG $ GS $GE $ YHOO $JNJ to name  a few. NDX darling $AAPL had one of the best quarters in its history and this week introduced IPAD a new product well received by media and public. Yet this all seems to be thrown under the bus in order to rebuke Washington and the President.

Its obvious why these crooks should be corralled and roped into complete submission. With thugs and crooks and rampant greed these handful  institutional traders will always dictate our financial markets as they have been doing  for decades. New regulations  are needed and should be handed down immediately. The next bear market should not  be based on the irresponsible acts of the previous bear market. That should never happen.

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Comments

3 Responses to “Politics not economy is dictating trading”
  1. Media Titan says:

    Anyone with pen and ink can write that. You Sir are very much to the point. The game has changed.

  2. Yeah. Seems like there is a disconnect between traders and Wall Street. Many traders just go long and not short. They hope things will work out but they don’t happen so fast. We are having a better year but as January goes, so goes the year.

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  1. […] climax of a heated battle between President Obama and the 50 or so FAT CAT Bankers who are now in jeopardy and  whose vagrant and irresponsible lifestyles  should soon be history. […]



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