If you have been following the markets this week, you may have a case of motion sickness. Gone are the days of small ranges as we slowly grinded higher.
Tuesday had monster manic action, yet the moves have been seemingly unexplainable or shall I say comedic. The market opened higher with indiscriminate panic buying because the market never goes down on the second Tuesday of the month or on tax day or odd number days in April or whatever random reason you can make up.
But a few hours into the trading session the market couldn’t sustain these panic highs. Things were reported to be getting dicey in the Ukraine or maybe somebodyflashed a sell sign, and poof there was a more than100 point drop in the NASDAQ off the highs
But you can’t keep a bad market down, and proving once again how insanely non-sensical this bad-news-is-good-news market has become, the market ripped higher toward the end of the trading session.
The reason for today’s rip – an economic assessment downgrade for Japan which smahed USDJPY higher and through magic of carry, lifted US equities. There was no let-up in Ukraine, no data to confirm growth hype, no US news… but the Russell and Nasdaq managed a 2.5% bounce in a straight line after the Japan headline
Buckle up and hold on for the ride!