We sure don’t know, and the pundits on CNBC and FBN are almost unanimous in saying there is nothing to worry about. Well, how many of them saw this month’s drop coming in the first place? Why should you listen to them now?
Here’s the past five days of US stock market trading (QQQ), courtesy of Trading View. Feel free to change the symbol, add lines and indicators etc, as you need.
US stocks got bashed, smashed and trashed, as the SkyNet StockBots ruled the day once again. A brief afternoon appearance by the SkyNet BuyBots cut the days losses in half, only to fade away into the close. The DJIA plunged 396 points (1.6%) and the NASDAQ surrendered 219 points (3.0%) as the high tech stocks lead the way lower.
The SkyNet StockBots battled it out to a mixed closed in relatively quiet trading. The DJIA ended higher by 124 points (0.5%) but the NASDAQ slipped 11 points (0.2%).
The SkyNet SellBots had early control, sending US socks sharply lower at the open. But precisely 9:30 am EST (funny how that happens), the BuyBots stepped in, erased the early losses and kept right on going into a strong close. The DJIA ended higher by 208 points (0.8%) and the NASDAQ jumped 122 points (1.7%).
US stocks continued to slide as the SkyNet SellBots dominated trading once again. The BuyBots mounted a weak rally at precisely 2:00 pm EST (funny how that happens), which failed as selling pressure resumed into the close. The DJIA ended down 206 points (0.8%) and the NASDAQ lost another 64 points (0.9%).
US stocks failed to rebound following yesterday’s smashing. The SkyNet SellBots pushed stocks lower again until precisely noon EST (funny how that happens) when the BuyBots mounted a weak rally, which failed as selling pressure resumed into the close. The DJIA ended down 100 points (0.6%). The NASDAQ managed to eek out a gain of 0.01 points.
US stocks got smashed as the SkyNet SellBots applied relentless pressure all day, with the BuyBots barely making a token mid-afternoon appearance. The DJIA plunged 602 points (2.3%) and the NASDAQ surrendered 206 points (2.8%).
And anybody who claims to know exactly what’s coming is lying to you. The entire global financial system is in unprecedented, uncharted waters.
Despite twelve years of near-zero interest rates, global economies other than the US are barely registering a pulse.
Several Central Banks have entered the monetary Twilight Zone by cutting their benchmark interest rates to below zero. That’s right, if you’re a big bank, you can actually “make money” by borrowing money. When the loan comes due, you pay back less than the amount you borrowed. What a deal!
And the perverse flip side of negative interest rates is that when you deposit your hard-earned money in the bank, not only do you not earn any interest, the bank charges you a fee just for the privilege of making the deposit. You have less and less money in your account every day. What a rip-off!
All of this financial insanity can only be seen as a desperate last-resort attempt by Central Bankers to stimulate their economies by force-feeding them with “better than free money”. (Free money that is conjured up out of thin air with a few mouse clicks, that is.)
But if there’s one thing that all stock market analysts and forecasters agree upon, it’s that “markets don’t move in straight lines” (at least not for very long). Look at any chart of any stock, any commodity, anything that is traded on an open market and you just don’t see long straight lines.
So if markets don’t move in straight lines, how do they move? Again, look at any chart and it’s obvious: markets move in zigs and zags. A more technical term for zigs and zags is waves. And there is no better way to analyze and interpret chart waves than with Elliott Wave analysis.
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the largest independent financial analysis and market forecasting firm in the world. EWI’s analysts cover every major market (stocks, currencies, bonds, energy, metals, commodities) worldwide, 24 hours a day.
The stock market waves have been warning of a major market meltdown for quite some time. Has that moment finally arrived?
We urge you to stay on top of the latest market action with commentary and reports from our friends at Elliott Wave International, below.
SkyNet was the global artificial intelligence network that the politicians and technicians designed to essentially run the world "for the benefit of mankind." However, they didn't anticipate SkyNet evolving and becoming conscious in it own right. SkyNet proceeded to explode nuclear weapons around the world, killing half of Earth's population.
The infallible Wall Street wizards have created their own version of SkyNet called High Frequency Trading.