This is my analysis of yesterday's move AH and forecast for today:
JPow told us all that inflation was not a concern and kept repeating that to endless reporters asking the same question over and over again.
Joe Shmoe gets home from work, turns on the news and sees nothing but FUD about inflation. Why? Because that's what keeps viewers tuned in the station and more viewer = more profit for the news media.
In a panic, Joe Shmoe loads up his new Robinhood account and sells everything. He knows that is the right thing to do because he has heard that inflation is bad for the stock market.
Joe sixpack doesn't have extended hours trading, or doesn't even know such a thing exists, so on his trading app, he puts in a sell order to be executed when the market opens.
If you have doubts about what I am saying, just look at Gold. When there are inflation fears, the smart money flocks to commodities like gold. Joe Shmoe and Joe sixpack keep their money in cash because to them, a hedge is the thing that keeps their neighbor's dog out of their yard,
Gold is down because the smart money has wisely sold the hedge they no longer need, since inflation is not a concern to the Fed.
. . . and there you have it!
Edit: TL/DR – 🐻, then 🚀🚀🚀
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