All U.S stock market indexes took roughly a 3.5% haircut today. Question is this, “Is it down from here?” and “Is there going to be a santa claus rally this year?”
The answer to both of these question is who knows, anybody’s guess. The stock market now a days have pretty much been manipulated by the U.S Government and Federal Exchange who pump borrowed /printed money into the markets to inflate them.
However, the fundamentals of the world economy is not in good shape, so the truth will always drag the markets back down. So, is there going to be santa claus / christmas stock market rally this year, there could be if again the U.S Government and Fed decide to manipulate the stock markets. Call it QE3, Operation Twist whatever it will basically mean more money printing and injection into markets.
If you look at the charts, to me at least it looks like it may try for a final run up, however the high of this year for the DJIA is 12,807, for Nasdaq 2872 and for the S&P it is 1363. One final note, that before the great crash right before the depression in the 1930’s the stock market saw the same type of volatility and markets going higher and higher as well, despite worsening economics. So, don’t count out how much the U.S Government and Wall Street can manipulate the stock market upward.
If it goes higher, I may add to my short position on Nasdaq using ETF on the TSX Canadian Exchange.
by Das Brain
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