Global markets in tailspin as Trump victory looms

[ready4ONE 5,400]

Actually they are not as the US market is not. Your butt hurt is showing.

Wrong...Again

What was accurate when I posted suddenly became wrong when the market rebounded? Middle of the road my posterior. No wonder you fell for Trump.

[Voice of Reason 10,298]

I know NB well enough to know that he didn't "fall for Trump" as you falsely state here. He's just too intelligent to fall for Hillary.

What was accurate when I posted suddenly became wrong when the market rebounded? Middle of the road my posterior. No wonder you fell for Trump.

[The Nature Boy 7,659]

I know NB well enough to know that he didn't "fall for Trump" as you falsely state here. He's just too intelligent to fall for Hillary.

I am going to make you the captain of Air Force one and my spokesperson when I become dictator of the Philippines

[OriZ 3,157]

If you look at the following chart you can see two things that explain two different points;

First - the last four "candles" are the action of the last 4 trading days. The third and 4th from the right are Tuesday and Monday, respectively, i.e before the elections. The last and before last are today and yesterday. I put an arrow under the 1st of the 4(as in 4th from the right) and under the third one(second from right). The first arrow represents the rally that was thought of at the time as a "Clinton fueled rally" which I had said was not so. The second arrow represents the "post Trump election rally". So tell me...if news drives the market, how come initially markets rallied expecting Clinton to get elected, and then proceeded to rally because Trump was elected. The answer is news doesn't drive the market.

Anyway the second thing I wanted to show here; I did not get a chance to try and offer an explanation in the other thread before it got locked so I'll do it here. There was some debate and confusion in regards to what they meant by the dow making a new high and then they removed it. Here is exactly what happened:

The chart is called a "candlestick chart". Most non-traders are not aware and do not use these charts but they offer more info about the day than regular closing price alone charts do. These show the highs and lows of every day as well as the close. The three horizontal lines on the chart represent: top one - the intraday high in mid August(tip of the tallest "candle"). Middle one - the close on that same day. Lower one - The close yesterday. Now take a look at yesterday's candle(again, second candle from the right). You see a little tail that goes slightly above the middle line. This means that during the day yesterday, the market was at a higher level than at the close of the record setting trading day in August.

Stay with me here, this is important. I've seen journalists do it literally hundreds of times. My take on what happened is this: Whoever wrote that piece was only aware of the closing price in August. Once the market, yesterday, during the day, exceeded that price, they wrote the piece about a record high, even though the market had not closed yet, and the high did not exceed the intraday high in August. But they did not even know what that intraday high was because they only look at closes, except for when they write the market is at a high during the day because the price went above that close. But look what happened. Lowest line shows you price ended up closing yesterday lower than yesterday's intraday high, as well as lower than the close in August(not to mention, again, the intraday high that day which was never exceeded yesterday). That is when I would assume they removed that from the article, as it was no longer relevant. Basically they jumped the gun. Today, however, we can see the Dow closed higher than that record high.

Regardless, another mistake that they make in my opinion is putting so much emphasis on the Dow. Media likes reporting on the Dow even though there are many other better and more important indexes. The Dow is a very narrow and selective index - case in point - despite its new all time high today, most stocks in the broad market actually closed the day down. So I don't tend to look as much at the Dow as it is not all that important, the S&P500 and NYSE and other indexes are more important IMO.

Edited November 11, 2016 by OriZ

[The Nature Boy 7,659]

I was listing to the news in the background and they said the market hit a record high.

That's all I know

[Teddy B 17,252]

I was listing to the news in the background and they said the market hit a record high.

That's all I know

Which side were you listing to?

[bcking 3,157]

If you look at the following chart you can see two things that explain two different points;

First - the last four "candles" are the action of the last 4 trading days. The third and 4th from the right are Tuesday and Monday, respectively, i.e before the elections. The last and before last are today and yesterday. I put an arrow under the 1st of the 4(as in 4th from the right) and under the third one(second from right). The first arrow represents the rally that was thought of at the time as a "Clinton fueled rally" which I had said was not so. The second arrow represents the "post Trump election rally". So tell me...if news drives the market, how come initially markets rallied expecting Clinton to get elected, and then proceeded to rally because Trump was elected. The answer is news doesn't drive the market.

Anyway the second thing I wanted to show here; I did not get a chance to try and offer an explanation in the other thread before it got locked so I'll do it here. There was some debate and confusion in regards to what they meant by the dow making a new high and then they removed it. Here is exactly what happened:

The chart is called a "candlestick chart". Most non-traders are not aware and do not use these charts but they offer more info about the day than regular closing price alone charts do. These show the highs and lows of every day as well as the close. The three horizontal lines on the chart represent: top one - the intraday high in mid August(tip of the tallest "candle"). Middle one - the close on that same day. Lower one - The close yesterday. Now take a look at yesterday's candle(again, second candle from the right). You see a little tail that goes slightly above the middle line. This means that during the day yesterday, the market was at a higher level than at the close of the record setting trading day in August.

Stay with me here, this is important. I've seen journalists do it literally hundreds of times. My take on what happened is this: Whoever wrote that piece was only aware of the closing price in August. Once the market, yesterday, during the day, exceeded that price, they wrote the piece about a record high, even though the market had not closed yet, and the high did not exceed the intraday high in August. But they did not even know what that intraday high was because they only look at closes, except for when they write the market is at a high during the day because the price went above that close. But look what happened. Lowest line shows you price ended up closing yesterday lower than yesterday's intraday high, as well as lower than the close in August(not to mention, again, the intraday high that day which was never exceeded yesterday). That is when I would assume they removed that from the article, as it was no longer relevant. Basically they jumped the gun. Today, however, we can see the Dow closed higher than that record high.

Regardless, another mistake that they make in my opinion is putting so much emphasis on the Dow. Media likes reporting on the Dow even though there are many other better and more important indexes. The Dow is a very narrow and selective index - case in point - despite its new all time high today, most stocks in the broad market actually closed the day down. So I don't tend to look as much at the Dow as it is not all that important, the S&P500 and NYSE and other indexes are more important IMO.

Thank you for some explanation. You clearly know more than I do on this topic. All I know is vaguely what's in my 403b and IRA. I wish I knew more about the market. I have friends who do very well by knowing more.

[The Nature Boy 7,659]

Which side were you listing to?

You know me bro. Take a wild guess

[Teddy B 17,252]

You know me bro. Take a wild guess

It's been a long week. I think I'll be listing a bit tonight.