Trump stock market rally continues; Dow hits new high

Heh... you reappear. Hard to say whether it was the result of post Christmas purchases or simply because trump didn't tweet... or, news like this...

 

And a surprise for Trump as well apparently.

 

Then why did he encourage people to buy stocks this morning? Shouldn't he just have just waited for it to bounce back and not worry about it?

 

No he doesn't or else he would have seen the folly of bragging about day to day market trends.

 

It's because the market was getting completely destroyed. This was effectively a bear market rally. Oil finally rallied, the high yield market quit getting destroyed for a day, treasuries sold off, and the VIX index cooled slightly. It wasn't because of that tweet.

 

Trump left the country Markets had one of the best days ever? Coincidence, I think not.

 

Gee, do I have to include emoticons?

 

the market opened up ~100, then above 200, then it turned negative for a while.

and when this catalytic event/quote was heard on wall street, the market took off https://thehill.com/homenews/house/422875-pelosi-trumps-border-wall-has-turned-into-a-beaded-curtain

Pelosi was mocking Trump's back-pedaling on the border wall,

"he first said, ‘We're going to build a wall with cement, and Mexico's going to pay for it" . he's already backed off
of the cement to a steel slab — now he's down to, I think, a beaded curtain or something,​

 

Yes I know I was trading it.

 

Swoly level emoticons pls

 

following this mocking by Pelosi, the desperate Trump WH reached out to a hedge fund manager for advise as to how to
curb the stock market fall; https://www.cnbc.com/video/2018/12/...official-sought-advice-on-markets-source.html

the advise given was to

• stop twitting criticism of Fed Chair
• more productive negotiations w China on the tariffs;
  • in particular, put a muzzle on Peter Narravro's incendiary rhetoric

since the Xmas eve sell-off, on Monday, there have been no Trump tweets attacking J Powell and
no incendiary rhetoric from Navarro; too, rumors of face-to-face negotiations w the Chinese have surfaced

these developments were the catalysts calming the market volatility, and traders started to step in to buy

 

Why is it when the stock market goes up it's because of Trump, but when it goes down it's not?

 

Tweets are not gonna cause long term damage. People will get over the stupidity and tkeep buying food and taking pictures of it with their iPhone.

The trickle down economics will cause long term budget damage but the tariffs are a minor easily fixable issue.

Im not defending Trump economics but what seems to be going on is a correction from over exuberance from his election

 

haha, it's not about Trump. Geez.

Yes the markets went up on the tax cut because corporate tax cut means bigger dividends which would raise share prices. But outside of that the market is responding to a global economic slowdown - what's happening in the market is fundamentally nothing to do with Trump. We probably should not raise interest rates any more until the global economy rebounds.

 

vix is the volatility index, it is used to gauge the level of fear / uncertainty in the stock market.
historically, pre-COVID 19, a VIX of >20 was considered high

• from mid Feb to mid Mar, the fear factor rose ~ 6-fold, from ~14 to ~85
  
  • reflecting the largest one-month stock market decline in history

  ​
• since mid mar, it has subsided, almost halved.
  • but on a historical basis, it remains extremely high.

​

https://stockcharts.com/h-sc/ui​

​

the 3.5% decline in fear/uncertainly today can be attributable to

• Bernie Sander suspending his presidential bid
  • wall street is certain that there will not be a socialistic extremist in the WH
• Dr. Anthony Fauci said new COVID 19 cases appear to be nearing their peak and the rate of hospitalizations is down.
  • there is light at the end of the tunnel

​

 

Only problem is that the tunnel is 18 months long.

 

I think we will have about 53 more months after this hiccup