It's Monday, a new week, likely to bring more political and global drama. But through it all the stock market has held its own. If stock prices were based upon negative news headlines and bearish blogs the S&P500 would be trading 50% lower than it is today. However money does the talking, and following it has been the right choice the last eight years.... but it hasn't been a smooth ride.
On Tuesday the Nasdaq hit a new all time high. Just one day later the bull market ended. It's over folks. It's time to pack up and head home. Yesterdays 2% decline was the final nail in the coffin. That giant 'Final Wave'???? ....... it's here, grab your boogie boards.
Just like the Trump drama is tremendous for the News networks, stock market declines are like car wrecks on the highway, everyone has to stop and look. When the markets flashed crashed , every news truck north of the Great Wall of Mexico was down at Wall Street covering the 'chaos'. On Tuesday with the Nasdaq at all time highs and not a news truck to be found. Go figure.
The VIX dropped 25% yesterday. It was a nasty reversal, usually something we are accustomed to seeing right after a VIX spike. Oddly enough the VIX was performing out of the ordinary the last few weeks. The gains were holding. You could even make a case that the 'fear index' was consolidating!
