Originally posted by mee
Wall street lost their collective minds for a single day a month ago after Trump won the election. Then they got out from under the bed and realized the world didn't implode like the fearmongering news and online message boards told them it would. Since then, the DJIA has gained almost 6% in the past month soaring to new highs.
Of course natural disaster or some other disruptive event could occur. But, otherwise, the economy didn't and won't just drop off the cliff as soon as Trump takes the oath of office. Or anyone else had taken the oath of office. Thankfully it doesn't work like that.
It was all technical. I had Bloomberg Live on my phone and cable on TV watching the market and the talking heads melt down together.
I slept for a couple hours, then I called the head of our trading desk at 5:30 the morning after - he said, "EVERY GOOD TILL CANCELED SellStop on the S&P500 futures contract
on earth filled overnight. Literally. Every. Contract. Completely cleared the entire world's Hedge Book. All of it. Literally."
He said Carl Icahn left the Trump victory party early and walked to his office.
Computer algorithms, not people, sold everyone out - short - and they had to buy back - which created momentum. And now psychology - Behavioral Finance - has taken hold.
But nothing
REAL has changed in a month, and it it won't change for at least another year.