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Originally Posted by WestRace
I suppose there are exceptions and there have been a few historic events with respects to the stock market crashes ... but I will approach these things as a "the house cashing in" kind of things.
Corona Virus is just an excuse. They are just trading and they need these things as a way to hype up or hype down in order to make money. Who the hell would buy Tesla anyway? Not that it's a bad company but there is no rationalization to see Tesla double its stock price in just a few days.
Beers ups! I am having a few Corona :-)
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No doubt there was a bit of froth in the market a week ago, but I think the selling spasms of Mon-Thu largely worked that thru, with the Corona concern as a catalyst for selling.
Friday’s sell off was more serious. The economic impact of Corona can be projected now, as airlines cut flights, businesses in China close/slow, etc. A bit of a panic sell, with continuing news of the day (CDC comments, Prez actions, news hype) contributing every time the market tried to rally a bit.
My guess is that the market has now priced in estimates that are a bit worse than midpoint, meaning there is still risk but the bias may be back to the upside. We’ll see what news develops over the weekend on Corona.
If I had more investable cash, I’d be putting in buy orders for Monday. But I like risk.