End of Next Week - Where will US Stock Market Be ?

[gunDriller]

Down 500 Points today.

Nice to see 'it' tell the truth.
If the decline rate stays in the 300 to 500 range for a week ... or let's say till the end of next week ...
with 2 days of up moves
-500
-400
+100
= -800

-100
-300
+200
-300
-500
= -1000

So, that would put the Dow down to 14,000.

It is interesting to watch.

Where do you think the Dow will be end of next week (or whenever) ?

[mick silver]

don't know but oil taken a ass beating Oil $26.30 -7.59 (http://money.cnn.com/data/commodities/index.html)

[JohnQPublic]

Fed is Swapping Zero Interest Rates for Cheap Oil; Turmoil in Markets Result (http://beforeitsnews.com/economy/2016/01/fed-is-swapping-zero-interest-rates-for-cheap-oil-turmoil-in-markets-result-2790404.html)

JohnQPublic
20JAN2016

Stock markets are in a panic selling mode as we speak. There are real issues out there, such as China’s economy and plummeting oil prices. Cheap oil is good, right? Well why are the financial pundits complaining about it. I believe it is because the banks are still leveraged up on derivatives, and the rapid change in oil prices could cause them to collapse. Zerohedge (http://beforeitsnews.com/r2/?url=http://www.zerohedge.com/news/2016-01-16/exclusive-dallas-fed-quietly-suspends-energy-mark-market-tells-banks-not-force-shale) has even reported that the Dallas Fed told Banks to suspend mark-to-market for energy loans four days ago. We are told oil is dropping because of lack of demand (China), to punish Russia, Saudi refuses to decrease production, etc.


I would like to propose another reason: The Fed need to raise interest rates. It cannot do that without collapsing the derivatives bubble. Unless, that is it can find a substitute for zero interest rates. Could $10/barrel oil be the ticket? If true, at this point, the first prick in the derivatives bubble has been applied by the Fed, and the corresponding collapse of oil prices is occurring. Is it getting out of control? Can the Fed control this process? Only time will tell.

[JohnQPublic]

I am betting lower. I dare not venture how much. Hoping form a little dead cat bounce today, but I suspect Friday may be bad again, and then again possibly Monday. Who knows.

[gunDriller]

Could $10/barrel oil be the ticket? If true, at this point, the first prick in the derivatives bubble has been applied by the Fed, and the corresponding collapse of oil prices is occuring. Is it getting out of control? Can the Fed control this process? Only time will tell.


Both.

It has been out of control for a while.


But in a MOPE Economy - management of perception economics - what matters is appearances.

And the General Public in the US is just slightly asleep & in a state of DEEP denial.


Deep Deep Deep Denial.

https://www.youtube.com/watch?v=WDvJyGRpozY

[Glass]

8035

But don't worry. It's the leader in clog-free performance.