Yesterday's market antics were so extreme and so fascinating, I feel forced to drop everything else and make some comments. Here's what the Dow and Nasdaq looked like (click on image to enlarge):
This last activity is apparently a reaction to an announcement by the Federal Reserve indicating that no dramatic actions will be taken by them in the near future, coupled with an assurance that interest rates will be kept to a bare minimum for the next year or so. It looks at first as though the market was expecting some sort of dramatic announcement that never came, and in response threw a hissy fit, plunging off a cliff in a desperate bid for attention.
But then a strange thing happens, which for me is absolutely inexplicable. The sudden drop is followed by a steady upswing over the next hour or so, of a staggering 600 points!!!!
If you compare the Nasdaq with the Dow, you'll see that, aside from the first few minutes, both are moving practically in tandem, with a Rockettes-like precision, even during the wildest and most unpredictable swings.
It is now 9:19 AM, and the markets are due to open in about 10 minutes. I can't wait to see what these performing seals will come up with today, but given what we saw yesterday, it will no doubt be totally unpredictable, wild and scary. While many economists may be breathing a sigh of relief at the remarkable upswing, as far as I'm concerned, a surge of 600 points upward should be just as alarming as a similar surge downward. Because what yesterday's antics tell me is that the market has either gone completely bonkers, or -- more likely -- is being manipulated. In either case, this is no place for ordinary people to keep their money, because an "investment" in stocks can no longer be regarded as an investment, nor even a gamble (since when we gamble we at least know the odds), but a foolhardy act of total and complete recklessness.