Election Day Follow Up

I concluded on Tuesday, US Election Day, that regardless of who won, either the debtors or the creditors, it would likely be a volatile day for financial assets on the Wednesday.

In the event the outcome was as follows:-

  • Volatility certainly increased, with the venerable Dow plunging by 313 points after Tuesday’s 134 point rise, making the 7th November the worst day for the Dow year to date with a big increase in volume. It wasn’t just limited to US stocks either, as most of the European indices reversed course throughout the day and the $Oil price collapsed by a near 5%.
  • According to CNBC it was the worst post-election market day since 1948, when Harry Truman famously defeated Thomas Dewey. Greece’s Parliament approved austerity measures in the first of two ballots needed to unlock an international bailout, whilst Germany’s Industrial Production declined by 1.8% in September versus the consensus -0.7% forecast.

So what was behind the “heightened” market moves?

The standard presumption is that social mood is led by events, such as economic, political or cultural and that events govern mood.

The socionomic hypothesis is that social mood is pattered according to the Wave principal, whose trends and extent determines the character of social action, including economic, political and cultural. As such mood governs events.

Hence, a student of the Elliott Wave Principal and Socionomics has the great advantage of actually understanding what drives markets, high probabilistic of where they are going with the fantastic additional benefit of anticipating non- market issues, such as the polarisation of society such as that currently evident in Greece, the US and elsewhere.

As readers of this blog you now have the opportunity to tap into Elliott Wave International’s most popular US forecasting services available. FREE of charge for a limited period.

Follow the link to tap into the future:-  Learn more

 

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