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Chapter 116: The impact of the midterm elections

S&P 500.

Dow Jones Index.

Nasdaq Index.

These three indexes are the barometer of the US stock market. Moreover, because the US stock market is the largest stock market in the world.

The three of them can be regarded as the three barometers of the world's stock market in a sense.

Whenever the US stock market is a bear market, they plummet and can no longer be red. Just like the financial crisis in 2008 and 2009.

Whenever the US stock market is a bull market, they are greener and can’t be greener anymore. Just like from 2010 to this year, although there are occasionally red embellishments, the overall form is still greener.

In the past decade, the stock market has been in addition to some small twists and turns in the middle.

Basically they are all rising.

It is precisely this upward trend.

That is why Apple or Amazon is the first super huge company with a market value of more than one trillion US dollars.

Only when the entire market is good.

Only companies with such exaggerated market value emerged.

Abel saw that all three important U.S. stock indexes were green.

And the value of red is not low.

S&P 500:2885.12,-0.8%.

Dow Jones Index: 26447.05, -0.68%.

Nasdaq Index: 7788.45, -1.16%.

The three indexes are all downward trends. The downward value is not large or small.

This attracted Abel's attention.

Because of the smoke of fate, he occasionally pays attention to the US stock market.

As the largest market value and the most freest stock market.

It is one of the best hunting grounds like him who has this plug-in that can predict future clips.

But before.

What he is concerned about is some celebrity stocks. The so-called celebrity stocks are those stocks with the highest gains in a day.

Or predict the stocks that have fallen the most fiercely.

It's just when the overall market is stable.

Whether it is the stocks with the highest gains, or the stocks with the more unlucky and the most severe declines.

The increase or the decline will not be too exaggerated.

A degree of death by several percent.

Most of the stocks have relatively small plates. Even if Abel invests money, he will make little profits.

Companies with larger plates, such as Apple, Google, Amazon and Microsoft, are not stable.

The size of the stock plate has a great impact on speculative stocks.

For example, if Apple's stock rises and falls by 1%, it will be a fluctuation of billions to tens of billions.

But if it were a company with a market value of only a few hundred million US dollars, the 1% range would only have a fluctuation of several million to tens of millions of US dollars.

Such a small amount of floating is meaningful to some retail investors. But for a crocodile like Abel who holds more than 2 billion cash flow in his hand.

This kind of company is the shrimp that tastes nothing.

Looking at the three major red indexes.

Abel curiously used his mouse to click the American line of these three major indexes in recent times.

In Southeast Asia and Asia, this kind of circuit diagram is called the K-line diagram. At first, rice merchants from the Japanese pirate country made it to symbolize the daily price fluctuation.

Later, it gradually developed into a fluctuation chart of the stock market fluctuations there. With the development of the economy and stock market of the Japanese pirate country in the mid-20th century, the K-line chart became popular in Southeast Asia, affecting the entire Asia and becoming popular all over the world.

However, the United States is very stubborn and is still using the "American Line", also known as the tortuous Line.

Both are actually the same thing.

In fact, compared with this, the k-line chart is actually more intuitive than the US line and can better reflect the power comparison between bulls and bears.

But the Americans are stubborn and have no choice.

Abel had never studied the stock market before. Half of the existing stock knowledge learned about Abel's original memory fragments. Half of them were studied slowly after traveling through time.

Today is October 5, 2018.

After Abel looked through these three major indexes, he discovered an interesting phenomenon.

This interesting phenomenon is.

These three major indexes have fallen for three consecutive days since October 3.

Although the decline in the previous two days was slight, the scale of today's decline can no longer be said to be slight.

Because if they are converted into the entire US stock market, this decline of 0.00 points or 1% means that the market value of tens of billions of yuan in the entire market has disappeared.

This level of decline.

On this curve, it has been rare in recent years. Occasionally, some falls, but they usually grow back on the same day or the next day.

Even if it has fallen for two consecutive days.

It will also rise back on the third day.

It is rare for this to fall for three consecutive days like now, and it is more than once.

It has not been common since the financial crisis between Zero-8 and Zero-9.

"Three red lines... three consecutive days. Is it a coincidence or something?"

Looking at the three major indexes.

Abel looked at some recent major events that may affect the stock market.

Check it all over the place.

There should be two major events that are most likely to have influence and can affect the US stock market.

The first one is international and has a great influence on the whole world. That is the sweater war that lasted for several months and caused a lot of controversy.

The sweater battle was initiated by the federal government led by the current US President Mr. Te Unreliable.

But this gentleman of the president did not expect that he would dare to challenge him.

Now there is a stalemate. There are wins and losses between each other, and China is generally at a disadvantage, but the United States is not without losses.

Except for sweater wars.

Another factor is the domestic factor in the United States. It is obvious that this factor has a much greater impact on the US stock market than the sweater war.

This event is a midterm election in Congress.

The federal midterm elections are held every four years according to the federal constitution, and the congressional elections are held every two years.

One of the congressional elections was held simultaneously with the quadrennial presidential elections, while the other was held between presidency.

The congressional elections held between presidency are the "mid-term elections".

This year is the year of the midterm elections. The donkey party and the elephant party will decide the outcome within this month.

This election has a significant impact. It is likely to decide the presidential election in two years. In the 2014 midterm election, the Elephant Party won a great victory.

Then, in the four-year presidential election in 2016, the current president of the Party, who is not optimistic about everyone, can be pushed up.

The midterm elections will take about a month to come to an end.

But its impact has begun now.

Because of the uncertainty of the election situation, the market has also become unclear. In this uncertainty.

Investors were worried about market changes, which triggered a decline in the three major indexes.

Even without the prediction of fate smoke, Abel felt that the results of this midterm election came out.
Chapter completed!
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