Trading is all about Volatility: the Media is all about liesVolatility readings have shot to a new high; 2018 has been a very active year as far as this indicator goes. This indicator has provided and continues to provide (advance) warning that traders should be prepared to deal with a more volatile market. Volatility is a terrible thing, only if one allows one’s emotions to do the talking; otherwise, it should be viewed through a positive lens as it keeps the masses uncertain.
On Monday (Dec 24), we had the worst Christmas Eve session in history. On Wednesday, another milestone was achieved; the Dow experienced its largest one day point gain ever. On Thursday, we set another record; the markets experienced the largest intraday reversal in over ten years. Such moves confirm uncertainty is at the helm and bull markets have never ended on a note of uncertainty.
Extreme Uncertainty should be viewed through a bullish lensThis market is not only experiencing an extended bout of volatility, but it is going through a bipolar phase as politics is being used as a weapon to move the markets. Without getting into details, politics (as politics, unless it’s related to the markets, is beyond the scope of this publication) is being used in a wicked manner to turn the masses on each other and to whip the markets. Whether you love or hate Trump, one thing stands out like a sore thumb; the media have never attacked a sitting president in such an aggressive manner. Trump has probably been attacked more than the last four presidents combined. Indirectly, this is having a significant impact on the markets.
Emotions drive markets if you drive the masses insane with the rage, the driving force behind the markets change. Now you have a rage/frustration factor to add to the equation. The press has decided to turn regular politics into a weapon of mass destruction. Every single, stupid, meaningless event is turned into some political story. Today’s reporters are akin to prostitutes who will do the bidding of the highest bidder. Most of them would be perfect candidates for electric shock therapy, for only a severely disturbed person could hold a straight face while falsely pushing out stories under the guise of news when at best they would fall under the category of Crap.