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This morning we awoke to DOW futures showing a negative 100 points. Well, didn't we just have an almost 200 point gain on Friday? We did. So, what's the Issue?? Let's see....
Markets use "news" as an excuse for making a move. If the market wants to go up, it will find some little tidbit of news to use as the excuse for why it's doing so. If it wants down, it will take what ever news it decides will be the "reason" for the downdraft. So today we've got the futures in the toilet and the "word" has it that it is because of the protests in Hong Kong.
Let me get this right... we saw the Ukraine almost start WWIII on the front doorstep of Russia, yet the market went higher during it. But because people are protesting in the streets of Hong Kong over Democracy, we have the futures down 100? Yeah. Right. Sure.
I'm sorry, but I just don't buy it.
Yes China has a bad track record of human rights abuses when it comes to protests. Everyone knows the word "Tianenmen Square" But to think the market is only reacting to thousands of folks protesting for more Democracy in China is a bit shallow. Markets use news as the excuse for where it wants to go. China was convenient.
The market has entered a period of increased volatility and trend shake up. Often that spells bigger trend changes. Stay tuned
Wag the Dog
First off a note that should make you all pretty happy. This letter will be much shorter than my usual rants. Evidently I hurt my wrist pretty bad Sunday, and had to go to the urgent care on Tuesday to get it looked at. I’m pretty resistant to pain, but this became unbearable. So, I’m in a soft wrap cast, and typing is, well, frustrating. ( and painful)