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Home / Business / That's why the stock market is a hot mess – and how January could ease the chaos

That's why the stock market is a hot mess – and how January could ease the chaos



Aliens who landed in New York last night would be an almost fitting end to the wild Christmas week Wall Street has seen.

But unfortunately, most of all has an explanation, like the Transformers Upswing that temporarily turned the sky over Queens and America eerie blue green. As far as equities are concerned, there seems to be more than one culprit behind the volatility break of the holidays.

Make Passive – Put Money In An Index Fund – And Momentum – Buy The Winners, Sell The Losers – Investors For These Market Fluctuations, David Kelly Said the Chief Strategist of JP Morgan Asset Management on Thursday.

The direction of a stock market that has not been deprived of major players is definitely not "decided and determined by millions of little Warren Buffett's today who carefully consider the value of stocks." It has never been this way and today it's not like that, "says Kelly.

The good news is, unless the fluctuations are "confirmed by actual income weakness or interest rate hikes … then they will fade", and it is likely time to buy.

The New Year will bring the actual test for stocks, says our call of the day by Sven Henrich of Northman Trader. "The gains coming in January are unlikely to show that the markets seem priced into the crisis, and if anything, this correction will remove the valuation surplus," he says in an e-mail.

Henrich says the markets have been "Experienced several factors that affect the thin market conditions: tax losses and outflows on the one hand, and increased funds and pension inflows on the other."

Fargo's report states that US Defined Benefit benefits loud pension funds will have to buy $ 64 billion in stock before the year-end was partially blamed for the fierce drive from ZeroHedge and others. These purchases are necessary to offset the large differences between bond and stock performance.

Pensionskassen + They are not Warren Buffett Passive Funds and Momentum Players + Juniors occupying the desks on Wall Street this week = Chaos.

The final word goes to Jani Ziedins of Cracked Market, who says investors should leave the noise behind and focus on the fact that the S & P 500 continues to hold the 2,400 mark. Should that give way, then "who knows where the floor would be," he said in a blog post.

"However, if we maintain this level for several days, weird dip buyers will test the waters and make an offer on the markets," says Ziedins.

The market

The Dow

DJIA, + 0.25%

S & P 500

SPX, + 0.42%

and Nasdaq

COMP, + 0.34%

all move higher in early steps.

The yield on 10-year Treasury Notes

TMUBMUSD10Y, -0.72%

is increasing, most recently at 2.7604%. The dollar

DXY, -0.28%

fell, gold

USA: GCU8

is higher and crude

USA: CLU8

Watch Market Snapshot for More Coverage

Europe Stocks

SXXP, + 1.93%

rise, but in Asia the Nikkei

NIK, -0.31%

retired and the Shanghai Composite

SHCOMP, + 0.44%

only slight increases.

Read: Why stock investors are afraid of a historic upswing was just a "bad bear trap".

The Chart

While some POTUS may blame the stock market collapse on this stock market this year and to be sure that its Twitter attacks on Fed Chairman Jerome Powell did not help, our chart draws Of The Day Of The Cullen Roche Of Pragmatic Capitalism Another Picture.

In a recent blog post, Roche has released this chart of the S & P 500, which overlays the MSCI All World Index, a widely used measure of global stock performance. It shows the two closely correlated, but also a pullback that began in January, long before Trump's tweet tirades got really hot.



Pragmatic Capitalism

"And that's the problem with the story" Trump caused the stock market crash "- If he crashed US stocks, he must have crashed the entire global stock market. Does anyone really believe that the President of the United States is the most important factor influencing global equities? "Asks Roche.

Why did stocks have a hit this year? "In order to rise in the long term, they sometimes have to fall short-term," he says, adding that markets sometimes work the same way.

Do not Miss: Finance Twitter: The 50 Most Important Investors Investors Should Follow

The buzz

Aphria

APHA, + 10.19%

APHA, + 8.06%

is on the news of US marijuana maker Green Growth Brands

GGBXF, -0.42%

is planning a hostile takeover of Canada's largest cannabis producer. The offer is backed by a wealthy and powerful Ohio family.

The Yankees are reportedly in talks with Amazon

AMZN, + 0.39%

and Sinclair Broadcast

SBGI, + 0,23%

on cooperation on purchase of regional sports network of baseball club JA,

from Netflix

NFLX, -0.32%

Choose Your Own Adventure "Bandersnatch" triggers many emotions.

Fighting a Defamation Suit, Tesla

TSLA, + 2.08%

CEO Elon Musk says he was only joking when he described a British cave diver as "Pedo".

Sears may face liquidation if chairman Eddie Lampert does not lead the way with a $ 4.6 billion buyout offer ahead of Friday.

Read: The wild swings in the stock market can give you valuable cash lessons

The Economy

The Chicago Purchasing Managers' Index will be released this morning along with pending home sales, but commodity data will be traded ahead of time delay partial state decommissioning.

Random reads

A transformer blowout has spiked New Yorkers into panic and some Cool Pictures Produces Videos

Adoption offers streaming from around the world for abandoned dogs seen in heartbreaking videos

Delta Flight Attendant's father booked six flights to ensure that she was not alone at Christmas

1,000 North Korean Defectors

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