I will put up a few charts later on this evening once the “markets” close however, I just wanted to add a moment of reality of just where we are, when it was only months ago, I argued this was precisely where the “markets” would be in the coming weeks and months.
The statement I made was in October of 2018 where I argued, “Look for the ‘Trump Bump’ to be erased in due course.” based on the then Fed policy, along with other things.
Over the following weeks it took out nearly three quarters of its rocket-ride and didn’t reverse until Fed. Chair Powell reversed everything he and his predecessor instituted and then some.
During that period I have been adamant in my stance of “it’s only temporary (i.e., Record highs) because the underlying damage had already been done and just reversing policies wouldn’t do anything more than superficially hold up an already crumbling foundation.
All it needed was a catalyst. Any catalyst. And what would happen next would be unimaginable. i.e., “It would take out the “Christmas Bottom” of 2018 and probably in short order then proceed to take out any all gains since the election. All during the run up I never changed my position.
This was “Crazy talk!” I was told over, and over, and over again.
That “crazy talk” has now become reality.
© 2020 Mark St.Cyr
Here’s a chart of the Dow Jones Industrial Average™ I did quickly after I posted the above to give reference. To wit:
Here it is again further notated and with today’s closing prices.