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It Happened Again In The Stock Market

stock market
photo by ken ratcliff

That’s right, again the markets dropped even more today. At this rate we’re going to be down to the market levels of 1995 in no time at all. As a matter of fact it’s been more like a roller coaster ride all day long. The day ended 191 points down for the day.
The markets opened flat and within the first minute of open trading it fell nearly 200 points. From there it turned around and worked it’s way being up 170 points. All that happened in the first thirty minutes.
This morning the Federal Reserve along with several other central banks from five other countries lowered their fund rate by fifty basis points. This is something that has never happened before and you will most likely see again in your lifetime. One would think that this would stimulate the markets to rally and help the economy. Unfortunately that wasn’t the case, instead the market are showing that they don’t know what to make of it. Part of the reason may be because of the banks don’t trust each other. They don’t want to lend money to one another at this time. I understand why they do this, I wouldn’t be lending money to anyone who has shown irresponsibility with their finances. Ive heard of creative financing, but what these entities have done recently is ridiculous.
The markets have been going up and down in today’s trading that shows the uncertainty in the economy. The swings have been big, moving as much as 400+ at several times throughout the day. The DOW crossed yesterday’s closing threshold six times going from positive to negative and back again.
The only silver ling that is out there is the Powershares UltraShorts. Most of them have climbed more than 50% in the last five days. I not sure if there will be any more gains from these stocks that I would want to put money in at this time. If you’re a day trader and have the ability to jump in and out of the stocks within the same trading day then you could make a killing in the volatility that has been going on today.

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