Yesterday all the US stock markets made a huge drop because of China’a announcement that more Tariffs on American products would be issued and I wrote THIS article. All the futures were deep red before opening and the markets opened very negative. After that it rose steadily and I went to bed. When I woke up I was very surprised when I saw gains of more than 1%! The markets had risen almost 4 percent in one trading session, and that is a lot for the stock market!
Checking the news to find the fundamentals behind this huge rise was the first thing I did, 4 percent in one session MUST be driven by something great!
The market rose a staggering 4% because Trump and Larry Kudlow told investors to calm down
I went to Google and searched for ‘Dow Jones’ and went to the ‘news’ section. I read all the results of the first page that came out after the stock markets had risen and got these results:
I read these articles:
https://www.cnbc.com/2018/04/04/us-stock-futures-dow-data-trade-tech-and-politics-in-focus.html
http://money.cnn.com/2018/04/04/investing/us-stocks-markets-china-tariffs/index.html
And guess what, non of these articles came up with a reason except for one or two that mentioned that Trump and Larry Kudlow calmed down investors:
Will this changes ANYTHING of the situation?
This wouldn't calm me, tariffs good for growth?!?!
WTF, A heavily overvalued stock market that just broke important technical levels to the downside bounces 4 percent (is a LOT for the stock market) because of ‘calming words’ from two persons?!?! It even isn’t something that change anything of the situation.
Then I went through Twitter and read the following article, what many may consider fake news or conspiracy:
https://www.zerohedge.com/news/2018-04-04/boj-goes-record-etf-buying-spree-prevent-market-rout
This makes way more sense for me, a central bank that bought up ETF’s that made the price rocket to avoid a devastating crash.
I couldn't find any reason for the abrupt rise in the mainstream media, and it is very suspicious that most of the articles didn't mention ANY reason at all. Normally when this big price swings happen, you read the reason in EVERY article. On zerohedge.com I found a reason that makes sense.
What does this mean if it is true? When a central bank buys ETF’s to save the stock market? It means they need to print more fiat to cover this, and this leads to inflation. When this story is true, the Japanese people just bailed out the stock market that was due to crash because of years of financial mismanaging of the FED. In other words, the normal people paid again for the sick and corrupted game of the bankers.
What do you think?
I have no proof for this, it is just suspicious. What do you guys think? Please let me know, because it is very important to know if the markets are rigged or if it was just normal volatility. If you have something that enables you to proof (against) this issue, please let me know in the comments. This knowledge can improve the result of our future trades and investments when we know for sure.
Disclaimer
This is no financial advice, just my view on the market.
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