The DOW dropped 372.82 points today shedding 1.78%. We were stopped out of our alerts on IWM and SPY. Were we down on fake news? I don’t know! What has transpired is Trump fired Comey. Then we hear that Comey kept notes of private meetings between he and Trump. But to my knowledge that was a leak from someone who know someone in the FBI that was friends with someone that knows Comey very well.
I know when I hear a rumor and I do not know the source and I have not heard from the person who was involved if it is the truth I take immediate action. As did the stock market today. Is it true? Comey has not said it is. I have not seen the internal FBI memo you think if it was a good leaker/source in the FBI they would have used their cell phone and taken a picture. So with all these “rumors” the market tanked. It was starting to recover and then Jeremy Siegel (http://www.jeremysiegel.com/) came on CNBC and told the world that with Trump we are in trouble. But if he were to step down and Pence take over markets would jump 3% (1,000 points on the DOW).
After Jeremy spoke the markets, which were trying to recover, dropped about 80 more points and the VIX spiked. Thank you Jeremy. We anticipate a rebound in the morning but with all the press on Trump and a black swan birth rate at an abnormally high rate we are going to re-evaluate the situation and think we may start monitoring the VIX and when it gets low get ready for another black swan to be born.
Lets leave you with this thought. If you could leak news like this knowing it would tank the markets and you could make 100%+ on your account would you leak the fake news? There could be some people somewhere celebrating tonight!