Late yesterday afternoon, President Trump’s Chief Economic Advisor Gary Cohn announced his resignation.
Index futures gapped down when the session opened. The Dow was down over 400 points at its low.
People on StockTwits and Twitter were saying the world was ending. Even members of my trading room were calling this the beginning of the end.
That this was the crash.
Well, maybe it is. Maybe enough panic will be generated that we keep selling off. Futures have gone red to green and back to red now.
But here’s the thing about the Cohn Resignation….
It doesn’t matter to the markets.
What is going on, in my opinion, is the market overreacting. It’s the big money getting bigger by letting retail burn cash as they continue to overtrade or panic sell.
Why not? [Read more…]