• 16 mins Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 21 hours How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 1 day America’s Shortage Of This Metal Keeps Trump Up At Night
  • 2 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 2 days U.S. Auto Sales Fall By 75%
  • 3 days Violating Quarantine? Big Brother Is Watching
  • 3 days Does Gold Still Have Some Room To Run?
  • 3 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 4 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 4 days The Impossible Challenges Created By Growing Population
  • 4 days Gold Skyrockets After Fed Pledges "Unlimited" Cash To Boost Economy
  • 5 days World’s Richest Lose $1 Trillion In Stock Market Rout
  • 5 days Gas Stations Shut Down In Venezuela As Coronavirus Crisis Intensifies
  • 5 days The Best And Worse Case Scenario For The U.S. Stock Market
  • 6 days 3 Industries Soaring During The Coronavirus Crisis
  • 6 days The Key To Commercial Hydrogen
  • 7 days Gold Still Beating Much Of The Market Despite Sell-Off
  • 7 days Gold Miners Struggle With COVID-19 Fallout
  • 8 days The Dollar Reigns Supreme In Times Of Crisis
  • 8 days The Most Exciting Green Startups To Watch In 2020
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Stocks: Are Terror Concerns Assuming a More Important Role in Market Behavior?

The following commentary was posted at Gillespie Research.


Some new crosscurrents are now coalescing to buffet the stock market, despite the market's increasingly short-term oversold condition. Ironically, growing concern about terrorism, something the market has ignored for a long time, now assumes a more important role in the overall psychological equation.

In the next few days, I'll work on a piece inventorying some of the stock market's technical considerations. The market's strong and growing short-term oversold condition has many looking for a rally. Certainly, some variety of reflex rally is possible, but under current circumstances, I simply cannot envision it running very far. Moreover, enough damage has now occurred to suggest that even a decent, albeit somewhat ephemeral technical bounce, is unlikely to occur in the absence of a short-term "washout," something yet to materialize.

(Ranked in Order From Recent Low)
  Recent High/Low Close % Change To
07/23 From
Date Low
Date High Low
NYSE Comp. 6324 6603 6/30 6231 5/17 -4.2 +1.5
Russ. 2000 539 592 6/30 535 5/17 -9.0 +0.7
DJIA 9962 10480 6/23 9907 5/17 -4.9 +0.6
Value Line 348 377 6/30 346 5/17 -7.7 +0.6
Wil. 5000 10554 11139 6/30 10518 5/17 -5.3 +0.3
S&P 500 1086 1144 6/23 1084 5/17 -5.1 +0.2
NASDAQ 100 1375 1517 6/30 1380 5/17 -9.4 -0.4
Average -6.5 +0.5
Median -5.3 +0.6

Although Wall Street surely has paid a good deal of lip service to terrorism, it's my view that until recently, this has been the approximate extent of the concern. Now, however, I think this force has increasingly exerted a negative impact on market psychology and behavior. If so, it is not likely to dissipate quickly. After all, we have now commenced a string of events that will not conclude until just before Labor Day, to wit: the Democrat convention in Boston, then the Olympics in Athens, followed by the Republican convention in New York. And, of course, this makes no allowance for the possibility of something more specifically aimed at disrupting the national election in November.

It is possible that if the get-together in Boston goes smoothly over the next couple days, immediate fears will be alleviated, helping stocks to bounce. However, it's my own feeling that terror concerns are settling in as more serious and somewhat protracted negative influence on the US financial markets.

Back to homepage

Leave a comment

Leave a comment