After a few scary days on the market that saw a number recent lows being tested, some good news has emerged. The markets are rallying strongly based on speculation of progress in U.S.-China trade relations, and a delay on the Brexit vote. How long will the rally last, and how high will it takes us? In yesterday’s appearance on Varney & Co., D.R. gives some insight on the headlines that are throwing the market a lifeline. Plus, an update of some of the biggest names in the tech sector, including Amazon looking to get into a market that capitalizes on the holiday spending spree…
As grade school students, we were taught that the Earth’s crust sits upon a series of tectonic plates which float independently on the Earth’s mantle. The boundaries of these tectonic plates, called faults, are where most of our planet’s seismic activity takes place.
Perhaps the most famous fault line in the world is the San Andreas Fault in California, which is classified as a transform fault, meaning the two tectonic plates are grinding past one another in opposite directions. When the plates shift, a large amount of rock-mass displacement releases an incredible amount of energy, which we experience on the surface in the form of earthquakes. While not nearly as Earth-shattering as convergent faults (tectonic plates which collide), the people of southern California will tell you that when those plates grind against one another, the resulting earthquakes can be incredibly jolting.
With the market reversing course seemingly with every new headline, we’ve been experiencing our own kind of seismic activity recently. A series of external market events, both positive and negative, have created a fault line straight down Wall Street. As a result, investors have experienced the shockwaves – in fact, recent charts of the broader markets have looked a lot like a seismograph reading.
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