Will Collapse In Oil Price Cause A Stock Market Crash?

A stock market crash is defined as sudden steep decline in stocks prices on the stock market. Before you make any investment, be just as cautious as you would be if you knew for certain that there would be a Wall Street Crash next week. I will use the Sobon Oscillator” to explain why the stock market could drop significantly during the near-term future.Stock Market Crash

Intel has fierce competition and a manufacturing cycle that is hard to make profits in. Now I know this market is dismal and the best bet might be to wait it out. However, it would be a great mistake to forget the past and have a pathologic optimism when trading stocks – you should be ready for everything. It didn’t recover all the way to back to its peak value of 1929 until the middle of the 1950s. A stock market crash reduces paper wealth, thus significantly reducing the overall monetary value of investors’ holdings. It is quite difficult to determine the next stock market crash without being an insider. The knock on effect of loss of value then permeates to the banking and insurance sectors, causing the value of stock in those companies to fall. By year’s end it would go up to around 290 and just before the Crash of ’29, it had a High of 381.Stock Market Crash

However, the drop from the September 1929 high of 381 to the July 1932 low of 41 was an incredible 89{d07e726dc35321c1887ba4b2e6d346fe7eafad5ef6cfcf877aa9d8d8ffdb003a}; looking only at year-end numbers misses about 13{d07e726dc35321c1887ba4b2e6d346fe7eafad5ef6cfcf877aa9d8d8ffdb003a} of the drop. After this dismal week, prices continued to fall, wiping out an estimated $30 billion in stock values by mid-November 1929. Ways to speculate on how noisy the stock market will be have exploded in the last decade with the advent of products tied to the Chicago Board Options Exchange Volatility Index. As a result, most attendees’ eyes glazed over as I dove into market dynamics and current market trends.

When the rich sees an opportunity, they will know how to speculate the market as though it is a great way to make money. Our Depression will likely last longer, but so will the new Age of growth to follow after the Federal Reserve Corporation is abolished in kind by our modern day Andrew Jackson, probably yet to be fingered. In 1987, of course, the Dow Jones Industrial Average dropped 22.6{d07e726dc35321c1887ba4b2e6d346fe7eafad5ef6cfcf877aa9d8d8ffdb003a} in a single session; the 1929 crash involved a 12.8{d07e726dc35321c1887ba4b2e6d346fe7eafad5ef6cfcf877aa9d8d8ffdb003a} single-session plunge. In the event where threshold 3 is breached, the market would close for the day, regardless of the time. The market is already overbought with the mutual fund and retail investors fully invested.Stock Market Crash

With that detailed explanation of what I do with my oscillator as prologue, let’s consider what happened in the market during 2016. To put these survey responses into context, consider that the 1987 and 1929 crashes were the two worst one-day plunges since the DJIA was created in 1896.