{"id":11472,"date":"2015-08-26T08:28:50","date_gmt":"2015-08-26T13:28:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11472"},"modified":"2015-08-26T08:28:50","modified_gmt":"2015-08-26T13:28:50","slug":"during-every-market-crash-there-are-big-ups-big-downs-and-giant-waves-of-momentum","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11472","title":{"rendered":"During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum"},"content":{"rendered":"

During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum\"Tsunami<\/a>This is\u00a0exactly<\/strong>\u00a0the type of market behavior that we would expect to see during the early stages of a major financial crisis.\u00a0 In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this time around will not be any different.\u00a0 As I have explained repeatedly, markets tend to go up when things are calm, and they tend to go down when things get really choppy.\u00a0 During a market meltdown, we fully expect to see days when the stock market absolutely soars.\u00a0 Waves of panic selling are often followed by waves of panic buying.\u00a0 As you will see below, six of the ten best single day gains for the Dow Jones Industrial Average happened during the financial crisis of 2008 and 2009.\u00a0 So don\u2019t be fooled for a moment by a very positive day for stocks like we are seeing on Tuesday.\u00a0 It is all part of the dance.<\/h3>\n

At one point on Tuesday, the Dow was up over 400 points, and many of the talking heads on television were proclaiming that the stock market had \u201crecovered\u201d.\u00a0 This is something that I predicted would happen\u00a0yesterday<\/a>\u2026<\/p>\n

And if stocks go up tomorrow (which they probably should), all of those same \u201cexperts\u201d will be proclaiming that the \u201ccorrection\u201d is over and that everything is now fine.<\/p><\/blockquote>\n

No, everything is not \u201cfine\u201d now.\u00a0 The extreme volatility that we are witnessing just tells us that more trouble is coming.\u00a0 Early on Tuesday the market was \u201cburning up energy\u201d as short-term investors sought to \u201cbuy the dip\u201d.\u00a0 But now that wave of panic buying is subsiding and the Dow is only up 240 points as I write this.<\/p>\n

Overall, the Dow is still down\u00a0more than 2,200 points<\/strong>\u00a0from the peak of the market.\u00a0 Even though I specifically warned that a market crash was coming, I didn\u2019t expect the Dow to be down\u00a0this far<\/strong>\u00a0in late August.\u00a0 Even after the \u201crally\u201d we witnessed today, we are still way ahead of schedule.<\/p>\n

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

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During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of MomentumThis is\u00a0exactly\u00a0the type of market behavior that we would expect to see during the early stages of a major financial crisis.\u00a0 In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this […]<\/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":[7551,6061,312,6848,8438,8439,501,8440,8409,8441,506,8442,8443,1138,3783,2731,8367,8370,753,7554,8373,8374],"class_list":["post-11472","post","type-post","status-publish","format-standard","hentry","category-economics","tag-dow-jones-industrial-average","tag-financial","tag-financial-crisis","tag-financial-crisis-of-2015","tag-financial-crisis-september-2015","tag-market-behavior","tag-market-crash","tag-market-downturn","tag-market-meltdown","tag-market-meltdown-2015","tag-markets","tag-panic-buying","tag-panic-selling","tag-stock-market","tag-stock-market-collapse","tag-stock-market-crash","tag-stock-market-crash-2015","tag-stock-market-crash-september-2015","tag-stocks","tag-the-dow","tag-what-is-coming-in-september-2015","tag-what-is-going-to-happen-in-september-2015"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11472","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=11472"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11472\/revisions"}],"predecessor-version":[{"id":11473,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11472\/revisions\/11473"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}