{"id":11441,"date":"2015-08-25T06:06:36","date_gmt":"2015-08-25T11:06:36","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11441"},"modified":"2015-08-25T06:06:36","modified_gmt":"2015-08-25T11:06:36","slug":"the-stock-markets-panic-potential","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11441","title":{"rendered":"The Stock Market\u2019s Panic Potential"},"content":{"rendered":"

The Stock Market\u2019s Panic Potential<\/a><\/h3>\n

The Odds Favor a \u201cWarning Shot\u201d Scenario \u2013 but there is a \u201cBut\u201d<\/strong><\/p>\n

As regular readers have probably noticed, we have upped the frequency of our \u201ccaution is advised\u201d posts on the stock market in recent weeks in light of the market\u2019s increasingly deteriorating internals. Although one never knows when exactly such warning signs may begin to matter, it is always a good bet that they eventually will. Last week the market delivered a little wake-up call to the hitherto rather complacent majority of market participants, by essentially wiping out 9 months worth of gains in more or less just four trading days.<\/p>\n

\"panic-button\"<\/p>\n

\"1-SPX,<\/a><\/strong>The S&P 500, daily \u2013 obviously, this chart doesn\u2019t look good \u2013 click to enlarge.<\/p>\n

The sheer speed of this decline masks the fact that the S&P 500 is actually only 163.83 points or 7.67% below its all time high made in May. In other words, this decline doesn\u2019t even amount to a routine 10% correction yet. And yet, as\u00a0Zerohedge reports<\/a>, cries for intervention by the Fed are amusingly\u00a0already<\/em>\u00a0going up. We actually don\u2019t believe that the federal purveyors of Anglo-Saxon central banking socialism will jump into the breach\u00a0that<\/em>quickly.<\/p>\n

Last week\u2019s sudden \u201c1-800-get-me-out\u201d moment certainly wasn\u2019t widely expected, not least because it was an options expiration week, and expiration weeks normally tend to follow certain patterns. Either there is little net volatility, or if the market has a weak close on Wednesday, it tends to rise on Thursday and Friday. This even happened in the October 2014 sell-off, which ended on a Wednesday in an expiration week (with the SPX gaining 80 points between the Wednesday intraday low and the Friday intraday high, rendering a great many puts, VIX calls, etc. that were bought earlier in the week worthless).<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Stock Market\u2019s Panic Potential The Odds Favor a \u201cWarning Shot\u201d Scenario \u2013 but there is a \u201cBut\u201d As regular readers have probably noticed, we have upped the frequency of our \u201ccaution is advised\u201d posts on the stock market in recent weeks in light of the market\u2019s increasingly deteriorating internals. Although one never knows when […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,303,4148,6066,6170,8421,1138,1141],"class_list":["post-11441","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-fed","tag-market-correction","tag-panic","tag-pater-tenebrarum","tag-spx","tag-stock-market","tag-vix"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11441"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11441\/revisions"}],"predecessor-version":[{"id":11442,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11441\/revisions\/11442"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}