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Comment by tomatowurst | Hacker News Reader

and right at the top of CNBC we see

    BREAKING Stocks rebound on hope inflation is peaking, Nasdaq adds 1%

On top of the defaults with China now looking like it won't be able to avoid Russia's fait down the line, with no end in inflation (prices keep going up across the board), with Shenzen and Shanghai in indefinite lockdown impacting supply chains, with BRICS + OPEC signaling they want alternative to USD + crypto/stablecoins impacting financial markets.

We are headed for unprecedented market deflation.

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Rule of thumb: if an equity market move is ever less than 1.5% in either direction, the headlines about why it happened are completely made up. Financial news has to assign a narrative even when there is none.

I've favorited this comment but why 1.5%? Why not 2 or 3%? I guess that is a big enough move to suggest some shift in fundamentals or some major event in FANG

I tried to be intentionally conservative, but I agree there’s an argument for it to be higher. As someone who watches markets a decent amount, 3% seems far more likely to be in clear reaction to some event, or a continuation of a recent major trend.

To be clear I’m referring to the whole market, not a move in a single stock.

They make up some correlation to sell a daily stock news update. They have no idea why it went up. It hasn’t even recovered from yesterday. Day to day movement means nothing most of the time and the stock market is detached from how the average American experiences the economy anyway.

Shenzhen lockdown already ended.

Not ended. They were eased. https://apnews.com/article/covid-technology-business-health-...

That's because most of retail and individual investors had puts or shorted the market. The institutional traders are not going to give up their profits so easily and stock always moves to crush the retailers

> most of retail and individual investors had puts or shorted the market

Most retail investors absolutely do not own puts nor are they net short the market.

The actual situation over the past few months seems to be the exact opposite of what you mention. It would seem that institutional investors have been using their retail facing market commentators to urge the public to "buy the dip" while the institutional smart money is selling every uptick:

- https://www.zerohedge.com/markets/jpmorgans-resident-permabu...

- https://www.zerohedge.com/markets/pain-trade-remains-higher-...

it seems they read wallstreetbets as well

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