Tuesday, December 13th, 2016

Wall Streets Temper Tantrum ended?

It all started on the day Goldman Sachs earnings came  out. President Obama mistakenly chose to rebuke Wall Street on that occasion, and put forth threat of new banking regulations.

At that point market was doing fine, no worries trading in a nice tight range  which was overbought. Within minutes the very same day SPX was slammed to the ground. Stellar earnings from AAPL, GOOG, GE, GS did nothing for the market in the following days. You would expect a normal surge in market with all those good news with trader’s confidence all jacked up ? No, all you got was a huge amount of  institutional selling unseen in recent times.  The only index left standing as $COMP and $NDX and than on Januray 28  2010, amid a  plethora of  confidence building news ringing up and down the Street a horrific sell off hit $NDX  and technology stocks, taking down APPL from 212 to 199 in a single swoop. Than on Friday Walls Street’s temper tantrum took to the worse and amid great numbers on GDP that the economy rose 5.7% another huge sell off hit the Technology stocks systematically. With an hour on Jan 29, 2009 NDX was dropped from 1790 to 1734 in a relentless sell program not in vogue since 2008!  The devil was on the loose -rampaging stocks, obliterating trading accounts, generating mayhem in an otherwise stable  financial market. It was a sight to behold.

Sell OFF

If you went to the Internet looking for an explanation last weekend, I bet you found nothing much.  Nothing stuck, stories didn’t make sense. The fundamental reason why a market drops were not there. Except lots of Market Technicians came out with weak answers that the market was overbought so it has to sell off !  Well sell off with such intensity and volumes ?  Than there was this Voodoo Technical analysis where  market cycles and moon-shadows were counted for in a hasty explanation and it got ridiculous in the number of assertions that were made. Surprisingly many so called daily market fortune tellers were silent. Like others, I kept searching for answers, and meanwhile going through the pain of re-arranging my positions and taking defensive measures.

Wall Streets temper tantrums are not uncommon. Back in 2008 when Congress rejected Market bailout under Henry Paulson, Wall Street lashed out at law makers dropping the market 771 points in a firebrand tizzy. There was nothing left in sight, no stock was spared that day.  Its was very painful to see. But it all came back soon.

Now here in 2010 when these criminals of Wall Street are faced with new regulations you have seen their ire ! It did lots of damage to the Technical charts , but you know what?  These idiots know that the economy is improving, all the earnings are coming in great  shape and soon they will go back and start buying  and you will forget about Voodoo market Technicians and moon shadows completely.  Things will be rosy again, and the foul mood of market will ebb but these few criminals would never change.  But meanwhile they took your money didn’t they by scaring you?

The market is still not safe place to be unless SPX closes above 1100 and NDX above 1800 than we may think that this Temper Tantrum sell off maybe over. Until than one should be on the sidelines.

One the side note -I wish these criminals one thing -Let Obama administration ring in the register and hand them down stiffer regulations and cut off their tails.

Related Sites

Comments

One Response to “Wall Streets Temper Tantrum ended?”
  1. Have you read ” Old man and the Sea ” by Ernest Hemingway ? I did in grad school. You sound like Hemingway, bitter yet honest, and you never accepted/ taken defeat in what happened yesterday.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

*