⚡️Some shutdown insights with chart:
Chart shows longest shutdown: 12/22/18 - 1/25/19
The fear factor has always been PRE-shutdown. Not DURING or POST-shutdown.
⚡️That means what?
⚡️So is shutdown really bad for markets?
⚡️But why?
Good luck. 🙂
SPY
QQQ
TSLA
AAPL
DIA

Chart shows longest shutdown: 12/22/18 - 1/25/19
The fear factor has always been PRE-shutdown. Not DURING or POST-shutdown.
⚡️That means what?
- If we shutdown, we may dip say 2-3%.
- But what happens during shutdown?
- You'd be surprised market actually RECOVERS during shutdown. BY A LOT.
- During the shutdown in 2018-2019, the market recovered the ENTIRE DIP, whole +15%.
- That's the same thing that happened in 2013. The market rose 3% during shutdown.
⚡️So is shutdown really bad for markets?
- No. Only shutdown fears really cause a dramatic effect BEFORE it happens.
- Remember the psychology of "priced in". Once a shutdown happens and market reacts for a day or 2, it's priced in.
⚡️But why?
- After the shutdown happens, anything is good news.
- If they announce a deal, that's good news.
- If they vote, that's good news.
- Thus, market does well during shutdowns.
Good luck. 🙂
Note
House passes bill. Senate now.This will allow 45 more days.
Meaning more volatility/ uncertainty for 45 more days.
Bullish short-term on "good news".
CEO & full-time trader.
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CEO & full-time trader.
🔥 Join the free community: discord.gg/buythedip
FREE full trading strategy & free options flow bot. Daily entries & exits. Swings. Daytrades. Lessons. Goal is to make you a seasoned trader.
🔥 Join the free community: discord.gg/buythedip
FREE full trading strategy & free options flow bot. Daily entries & exits. Swings. Daytrades. Lessons. Goal is to make you a seasoned trader.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.