First of all, the markets don’t really “close” at 4:00 pm anymore. Anyone who trades was watching it fall and why the trade volume was higher after 4:00 than any other time period that day. I’m in Asia so the timing below is a 12 hour difference. Volume bars are the light gray.
I watched the tape live as someone was selling millions of shares at a time before he even started talking. Then a mass push down, that wasn’t retail, as soon as the chart was brought out. They had their fear generating moment to kick off the panic sells.
”It’s different this time” is always the narrative. It’s always different, but always the same. The market may experience an unprecedented drop and sharp rebound. It may trade sideways for years, we don’t know.
What I do know is that once the market makers determine they have scared all the shares they can out of retail, they will begin buying to the upside again, so they can continue to grow their wealth. Once they have all the shares they want, the market hype will return as they sell their shares to us before the next “unprecedented” event.
I didn’t come in here to argue politics. I trade and I invest. I have a pretty good understanding of the psychology of the markets based on years of study, both real time and through books. I came in here to share information so maybe you guys can take advantage of any upcoming opportunity, too.
“A quote from Mark Twain, “History doesn’t repeat itself, but it does rhyme,” is a familiar piece of wisdom that stock market investors use when confronted with taking a “this time is different” approach.” As quoted by many stock pubs.