We saw such unusual market action on Wednesday, Nov. 29, that I had to push my original plan for today's article until next week.
On Wednesday, we had very a unusual occurrence – strongly bifurcated (or split) market indexes here in the United States. Here's what I mean:
- S&P 500 was almost exactly flat: It finished the day down 0.004%.
- The Dow Jones finished the day up an appreciable 0.4% (up 104 Dow points).
- The Russell 2000 Small Cap index was up 0.3%.
- The Nasdaq 100 was down big at a 1.8% dip (and was down 2.3% intraday).
That's a split market. That's a crazy market. That's also a crazy profitable market.
When we had the so-called "Tech Wreck" back in June of this year, CNBC called me while I was sitting comfortably on my couch the night of June 12 and asked if I'd come on air in two hours and talk about my analysis of the last couple of days' events. I was happy to help. I told them that the market was in no danger and should rebound.
Wednesday, with the markets having very similar split-index action, I was telling the editorial staff at The 10-Minute Millionaire that story and halfheartedly suggested they might do it again…
And the on-air request from CNBC hit my email at precisely 7:29 p.m. that night!
Here are the thoughts I put together for them… plus what I didn't tell them about how to profit.
Here's What I Told the Network About Wednesday's Split Market
When I'm preparing to go live on TV, I have to focus my thoughts to convey the essence of some usually complex ideas in a very short time frame. While they're a bit more than "sound bites," the networks like tight, fast answers.
So here's the bottom line of Wednesday's strange behavior from my notes for CNBC – then I'll share what we'll do with that information.
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.