The Dow Jones Industrial Average futures are down this morning (Tuesday March 10, 2015) on FEAR of interest rate increases. This is the SAME news item we saw on Friday morning, March 6, 2015.
On Friday the Dow was down 300 points, but yesterday (Monday March 9, 2015), we gained half of that drop right back.
In addition to flipping out about interest rates that have not even moved yet, the US dollar continues to strengthen. This is primarily because around the globe, folks are realizing the banks in Europe are essentially paralyzed. There are worries the “quantitative easing” program begun in Europe (only yesterday!) may not be enough.
For goodness sake, let it work a while before doing the freak.
All this should reinforce the stock market is not rational. It gets driven by emotions and knee-jerk reactions. Like having a moody teenager as a co-worker, you have to be prepared to live through the tantrums.
Our indicators have been telling us to expect short-term sloppiness. Every time (yes, every time) short term indicators get very VERY positive (as they were about a week to ten days back), you can expect the market to swing back in the other direction.
Pretty normal, but the market makes sometimes VIOLENT moves. So expect the short term to be sloppy and more volatile. The intermediate term still looks OK.
Finally, we do not believe this will be a big deal, but Apple is getting added to the Dow Jones Industrial Average on March 19th.