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February 2012
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How much must the stock market go down before the Government steps in and shuts it down to cool off?

Answer:

You’re confused on multiple topics.

When stocks get overheated, measures are taken to halt trading while the SEC checks on what is causing the stir. That happens on a regular basis.

This was put in play after the 22% drop in one day in 87, that was all due to panic. The market was halted after the 9/11 tragedy, but the entire market is not typically halted – that’s extremely rare. Individual stocks are halted on a fairly frequent basis if something doesn’t make sense in the trading pattern. With the new SEC rulings on shorting, that will likely change to be even more positive.

You need to realize that commodities were up HUGE today – gold, oil, metals, etc.

You need to realize that inverse funds were up HUGE today.

Just because the DOW or S&P are down does not mean all stocks or down, nor does it mean no one is making a profit.

The market is doing its work on less-than-transparent FINANCIALS – people just don’t like the answer. This “cleansing” has needed to happen for a year. The fact that it didn’t is why the markets have been in a funk for that time period. We NEED to get this resolved, we ARE, and the point is to learn from it and move forward, not whine about it. When things are finally resolved, the upward momentum is going to be explosive and fast, and it isn’t too far away.

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