One of the biggest flaws about “Watching the Market” comes from looking at the closing numbers of the varied indexes.
Yesterday was a classic example.
The DOW closed up 157.62 points which appears to be a relatively good day.
However, the opening minutes saw the Dow down 715 points only to reverse course and reach 25,891 by mid-day.
That’s a 1,001-point swing to the upside.
Within an hour the DOW fell over 314 points bringing back into the red zone and managed to struggle its way back to the plus 157.62 at the end of the day.
The boyz in the “Club” love days like this. It’s where they make fortunes at your expense.
Unfortunately, it’s also reminiscent of what happened in February where the markets began their horrific descent of over 4,000 points in one week.
Although is seems like a lifetime, it’s only been three months ago where chaos in the markets took over.
Back then we wrote:
Ironically (or NOT) they (Presstitutes) were crying over the loss of 4,000 points last week calling it the greatest loss in history.
Of course, they only tell you partial truths…And they do it in order to give the doom porn freaks a cheap thrill.
Let me explain.
The 4,000 point drop last week was the most points lost in one week’s time. However, it only represented a 14% decline in real terms.
Compare that to October 19, 1987 when the DOW lost a mere 508 points in one day. However, the 508 points was equal to a 22% loss in one day.
We mention this to remind you that you can’t – and shouldn’t – believe what the financial whores say about how great or terrible the markets are.
You can, however, believe that Volatility is coming back with a vengeance and Monday’s action is just a warm-up act.
It’s all part of how 2020, The Year of Chaos will either wreak havoc on your investments or present you with the opportunity of your lifetime.
Be sure to read our June edition of “…In Plain English” to learn more about those opportunities.