Dow Is A-Dropping.. 4 Possibilities Why...

Well its Thursday... Dow down another 216pts or such as of this writing...

And the financial media will say its because of the 'Omen' or fear of Fed tapering or higher interest rates..

Or its because of bad dividend reports from Wal-Mart or its due to 'a necessary adjustment' or 'profit-taking' any other rationalization because they're worms and must write something to keep the paychecks coming...

So why is the Dow at 15,112 as of noon, a drop of 386 points in 48 hours since a mid-day Tuesday trading high of 15,498?

Well let's put on our Sherlock Holmes, Miss Marple or Encyclopedia Brown thinking caps and really ponder through this..

Possibility #1:  The market runs on two emotions:  greed and fear.

Think of it as a math equation... Greed is (A); Fear is (B)

When Greed for profit is greater than the Fear of losing it all (A > B), people invest..

When the Fear of losing one's life savings is greater than the Greed of making an extra thousand dollars (A < B), people pull out...

Uncertainty + Rumor + a pack mentality of follow the leader equals 337 pt drops in 48 hours

Possibility #2:  It is a way for the Big Boys to stave off Fed tapering

There's been a lot of talk in the last week by those in the know that tapering could begin as early as the next month as the current Fed Chair winds down his far too long helm...

How best to deter tapering from taking hold?

Present a stock market that is fragile, weak and uncertain to the American populace who is too ignorant or oblivious to understand the ruse being played so they will vocally clamor for something bad for them while believing its for their good.

This gives the Fed political cover to continue QE and few are the wiser as their collective cities and municipalities are crumbling under heavy debt loads that would take less than 7 QE money-dumping days to resolve...

Possibility #3:  Its August being August...

On August 16, 2011 the Dow was at 11,405..  Three days later on the 19th, it finished at 10,817, a drop of about 600 points..

And 12 days later where did it finish on August 31st?

11,613... up 208 compared to August 16th..

August is just a time for fluctuation as the market begins to pick up trading from the summer slowdown..

By the way, compare that August 16, 2011 figure to today even with our current drop...

15,498 - 11,405 equals 4,093 points..

That G-D stock market has risen over four thousands points in two years i.e. four Trillion dollars in added liquidity while the rest of the US economy is dying a slow macabre death..

Possibility #4:  Maybe Investors are waking up to reality

This possibility is in connection with Wal-Mart's poor sales..

They reported domestic revenues of $116.2 billion. Analysts (pretend experts with a fancy title) had been expecting $118.5 billion. Sales in stores open more than a year declined 0.3%.  

Don't weep for 'Wally World' just yet-- they're still the US' #1 employer and makes a financial killing with their stores in overseas markets...

But there's a trend developing.. Target and Macy's also will be missing their projected sales figures meaning we're talking about a downward trend in retail shopping

Of course when absolutely nothing has been done by government to fix the real economy and many people are living off their savings or credit cards...

This is what you get for 5 years-- a pretend recession where those hurting are too proud or not organized to make demands and stand their ground for positive change.

Oh so many feasible possibilities really that have little to nothing to do with what the finance media rationalizes....

Who knows... Maybe it is the precursor to a big crash followed by long market correction..

 If that is the case, start taking your $$ out of the bank, do your preparation work and then relax and watch the show.

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