Calculation by me came to roughly a 7 decline when the market would open. A decline that was unrealized and then tossed aside when the day dawned and grew light with the dow ultimately gaining 257 points today. S p climbing 1. 1 . And the nasdaq finishing the same, up 1. 1 . The markets now up close to 4 for the week, which means if we can hold at these levels, this will be the best week of 2016. I know youre puzzled. I know its hard to believe that someone who is regarded as the enemy of the stock market last night can be embraced as an old friend by midmorning. But i want to explain, just put it in plain english so that you can understand whats happening here. To begin, though, you have to get into the heads of the people who actually bought stock, people who committed capital today. Thats whats often the key to figuring out a rally. It was downright absurd, totally insane, but then of course turned out to be anything but. So let me list the types of buyers, the people who came in wi
Market would open. A decline that was unrealized and then tossed aside when the day dawned and grew light with the dow ultimately gaining 257 points today. S p climbing 1. 1 . And the nasdaq finishing the same, up 1. 1 . The markets now up close to 4 for the week, which means if we can hold at these levels, this will be the best week of 2016. I know its hard to believe that someone who is regarded as the enemy of the stock market last night can be embraced as an old friend by midmorning. But i want to explain, just put it in plain english so that you can understand whats happening here. To begin, though, you have to get into the heads of the people who actually bought stock, people who committed capital today. Thats whats often the key to figuring out a rally. Thats how youll know whether insane, but then of course turned out to be anything but. So let me list the types of buyers, the people who came in with real money, why they were motivated to do so, and how they moved the market. T
Shift absolutely in the way the market views the relationship between the white house and the economy. And therefore the stocks. It was an amazing transformation which continued today, even as the dow gained 40 points, s p declined 0. 14 and nasdaq advanced 0. 54 . Nice little recovery for the nasdaq. Looking ugly there. We spent all week talking about the markets reaction to trumps election. How it went from being shocked and dazed and confused and scared to suddenly bullish in the blink of an eye, with investors reaching for stocks that benefit from aggressive Economic Growth while they dumped the nogrowth gridlocked names. The sea change was radical because the two candidates were radically different. Clinton stood for more regulation, higher taxes, and if she won, shed have a Republican House of representatives, which would have meant for gridlock. Thats what the stock market had been banking into going into the election since the polls showed clinton way ahead. Trumps a real estat
Which continued today, even as the dow gained 40 points, s p declined 0. 14 and nasdaq advanced 0. 54 . Nice little recovery for the nasdaq. Looking ugly there. We spent all week talking about the markets reaction to trumps election. How it went from being shocked and dazed and confused and scared to suddenly bullish in the blink of an eye, with investors reaching for stocks that benefit from aggressive Economic Growth while they dumped the nogrowth gridlocked names. The sea change was radical radically different. Clinton stood for more regulation, higher taxes, and if she won, shed have a Republican House of representatives, which would have meant for gridlock. Thats what the stock market had been banking into going into the election since the polls showed clinton way ahead. Trumps a real estate developer, though. He develops real estate. What does he stand for . Lower taxes, fewer regulations, borrowing money to build infrastructure. When trump won, we had to throw away many of the s
Actually becomes cheaper. Just like any other piece of merchandise. If a stock thats been crashing stabilizes for a bit, potential investors come in to do some tire kicking and then they do some buying. These factors came onto play in a huge way today with the dow advancing 21 points, s p gaining 8. 3 . The nasdaq, the center of the strength, climbing 0. 86 . House of pleasure. Today the muchmaligned momentum stocks bottomed. Theyve become the bain of so many managers existence, almost all roared higher today. Why did that happen . I think it was a combination of lower prices going into the session, some takeover chatter, the charts, a cessation of new ipos, lack of Insider Selling and the first time in ages, a fear of being short. Meaning a fear of betting against stocks. Not of being vertically challenged. Let me explain each one of these. First, lower prices and takeover talk. Turns out stocks do get cheaper as they come down, even stocks that are outrageously overvalued versus the