The Crisis Has Passed!

Not! As I wrote in the comments section after a 200 to 300-odd point loss in the Dow a handful of Fridays ago, we were going to get a rally. And we did. And, as I told my friends still holding the bag this past weekend, we'll get a rally this week. And, we have. There are certain very high probability short term rally points and we hit one this past Friday at the close. That probability of a rally was over 90% in the last ten years. Markets go up and down for a million reasons that don't involve fundamentals in the short term. The press writes whatever seems to be a headline story for the day as a reason for the rally but professional traders know it has nothing to do with headlines. But, they aren't going to tell the media or the public that because they like both to be completely clueless. How else are they to manipulate them? A serious decline going into Christmas would be very Grinch-like and it wouldn't allow Wall Street to take time off for the holiday season. That said, pricing action today shows a lack of confidence of this being anything other than a trader's rally. Grab the dice for another roll! Enjoy the game.