What we are witnessing in the stock market is unprecedented with moves mostly lower, but with a record-breaking break out to the upside on Wednesday.
The 1,086 point move on the Dow was the highest point move ever. The question Tuesday morning is why will we give back more than 400 points to the downside?
These moves and the huge slide before Christmas feel like a tug of war between two factions.
One with a need to damage the economy along with President Trump’s claims that he is succeeding where his predecessor failed.
The other side is somewhat muted in its response to this highjacking of the markets.
How else do you describe the latest moves?
Fed chief Jay Powell appears to be in with the first camp. How else to categorize four rate rises this year while enjoying full unemployment without finding inflation in the couch cushions.
In all my years of market watching I have no other idea of what we are witnessing in the markets. The moves are unprecedented, so therefore a new thought n the cause is needed.
The dark forces in the market are attempting to take the economy into recession through cratering consumer confidence by taking the wealth effect away from Americans. Next will be to repeal the tax cut in the House in 2019.
With these initiatives the Democrats feel they have a better shot of gaining the White House in 2020. It’s a nefarious plan backed by Democratic money in the markets.
Let’s see who will ultimately will win the war for hearts, minds and wallets.