Last week the markets surged over the reopening of the economy.
This week the markets run scared over the reopening of the economy.
Jeeze, investors... pick an emotion already, will ya?
Supposedly, it’s on concerns that Trump is talking tariffs on China.
Computer algorithms dont have emotions.
The Market needs to develop some volatility herd immunity.
Market craps in the pants every time Trump imposes more tariffs on Chicoms in defense of American jobs & balanced trade.
Because in the short term it can cause dislocations in business activity. Market doe snot care about long term interest of United States of America.
I have pretty consistently made money trading options by treating the market as a hysterical ex-wife (mine actually).
When it drops as a matter of panic, I watch it a bit and then buy when I think it has reached a bottom. I define reaching bottom by the market hitting a low point and not being able to push on down past it and hold. If you watch a stock a lot, you can see the market get weak/wobbly trying to go lower. Sometimes I call it wrong so I have to just sit tight and wait for it to start climbing.
When I say fall on panic, I mean one must assess the putative reason for the plunge. I think most Freepers could be pretty good at determining whether the reason for a plunge is a valid one or whether the plunge is a hysterical reaction.