Tuesday, April 4th, 2017

Why the market is crashing?

Closer watch over Wall Street will help consumers make better informed choices about investing and shine light on the shadowy deals that caused the financial crisis, President Barack Obama said Saturday in pushing Congress to pass overhaul legislation.

In his weekly radio and Internet address May 15, 2010, Obama said the bill also would curb predatory lending practices, prevent banks from taking on too much risk and give shareholders more of a say. “Put simply, Wall Street reform will bring greater security to folks on Main Street,” the president said  http://yhoo.it/9dRGLd

It should come as no surprise to you how Wall Street reacts. If you go through the archives of this site since January you can read how Wall Street throws its Temper Tantrums. It behaves like a 2 year old kicking his toys and trashing his playground. Later on the same wayward kid goes back and picks them up and plays again. Wall Street  NEVER kills their Golden Goose.The market always come back sooner or later. Understanding this “market psychology” and ” market behavior ” will empower you ahead of the TV watching crowd that takes lame excuses for market behavior as truths.  You have to read between the lines and be way ahead of the crowd that naively digests nonsense and and goes out and loses money. To those people half truths about Greece debt and Euro declines are well suited. Let it be.

The market is crashing because Senate is debating biggest overhaul of Wall Street since 1930s. This cuts down lucrative but questionable practices.This sweeping legislation will empower consumers and protect your interest and void the possibility of the crisis that brought a mighty financial system of  United States to its knees by a handful of people on Wall Street.  But the problem lies that the very people to whom this matters are the biggest operators of  the stock market. These are big traders that you bet against everyday.They have been there for decades operating with impunity and freedom and often with risky and highly questionable conduct. During Bush era they got lot more freedom and a free reign to horde illicit wealth on the backs of American people. Greed and more Greed became the self driven engine of choice. Dark pools of transaction with little oversight and accountability became the norm and practice. Now all of this is about to come to a full stop. There are already civil and criminal investigations being conducted by SEC on these operators and the noose is getting tighter everyday.

Short term this market will stay in this nasty mood blazing huge red candles and volatility will engulf trading accounts. the Yellow flag is out. There will be some up days and rallies off oversold conditions on technical bounces and they should be used to lighten positions and hedging.

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