Stock Market’s First Day 2017

My best estimate is that January 3 will begin with a sell off. Reasoning will be that our economic situation is so dire that higher prices are not possible. Don’t forget that any money you have available to lose, you had to earn. The Federal Reserve and its friends have any amount they can imagine. They also know that if they lose, they will almost certainly be bailed out by the government. Their gamble is heads we win tails you lose.

With all of the money the mind can imagine, none of which they have had to earn, it is easy to decide what happens to your money. Stealing it from you is not a difficult task.

Chances are extreme weakness will stabilize if not before the end of the trading day within a few trading days.  By then bears will have be loaded up on short positions and be ready to be squeezed. Those with profits will cover while they can and the averages will rocket to new highs.

The other possibility is that traders may have smartened up enough enough not to participate this time.  After all, the economy has been destroyed. The mob will cut and run. The Fed will be on its own and the market will crash like nothing you can imagine.

This is not a real market. I don’t trade in fake markets. Many opportunities will emerge after the crash. Again, I can’t time the crash well enough to justify trying. Buying opportunities after the crash are a certainty.

There are circumstances where I will go on the short side and I will keep you posted on that.

Lastly, assuming the mob maintains control of the market, look for AMZN, FB, APPL,  NFLX and other fantasy based stocks to be weak this year. Most goosing will be in the blue chips.  Be warned, the mob is not as strong as it was this time last year and any number of stunts will be tried.

 

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About Fantasy Free Economics

James Quillian is an independent scholar,free market economist, teacher of natural law, teacher and originator of the Fantasy Free approach to economics. James Quillian does not believe lies. Contact: news@quillian.net
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