Friends
The unwinding of speculative excess continues, with the likes of Tesla once again falling dramatically today. We’ve talked about how silly a certain segment of the market had become, and how silly it was for people to pile into a stock because it was splitting its shares. Simply put, silly season seems to be coming to an abrupt end, and as we have also pointed out, that is probably not a bad thing.
For the day, the Dow Jones Industrial Average was down 632 points to close at 27,500. The S&P 500 was down 95 points to finish the day at 3,331. The beleaguered Nasdaq Composite Index was down 465 points to close at 10,847. Gold was up $6 to trade at $1,940 per ounce, while oil was down $2.89 to trade at $36.88 per barrel WTI.
A normal pattern to these type of selloffs would see a down opening tomorrow followed by some dip buyers by the afternoon. Of course, there is not much normal about the market conditions we find ourselves dealing with these days. As I said last week, seasonally this is usually a difficult time for the market and given all the headwinds that stocks now face, including an upcoming election, it would be wise to keep yourself buckled in. We’ll keep you up to date on the market’s activities, so stay tuned.
Have a nice evening everyone.
