Loading ...The boat of optimism pre market was quickly sunk by real economic data. The stock market dropped like a rock as the bell rang 50 points before finding temporary flooring. The VIX however is only up 1%, so the fear is not in the air. This tells me that the drop was more about electronic trading than actual investing sentiment. Everyone is expecting a correction, everyone is surprised how high the market has gone, and everyone wants a correction so they don’t feel like they are over paying from something that was 35% cheaper just a few months ago. I always say the market will do what it wants to do, so we will have a near term slight correction. However, if the unemployment number Friday is much better than expected, we are heading higher. The one thing that is troubling me this morning is that the dollar is slightly weaker even though the market is down. I would of have expected the dollar to gain a little strength. Keep an eye on hyper inflation and increasing rates, both of which are have high probability considering our current economic policies.
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