Market Madness!!! Actually, no market madness

Here is my complaint of the day. This morning, when it had been declared the Democrats took the House, after the market had been open about 20 minutes, the Dow Jones Industrial Average was down 12 points, which is statistically meaningless. However, the headline of the news release by Reuters was: "Market Heads Downward after Democrats Win." Ummm, no, it wasn't. The Dow Jones has been moving straight upwards for the previous three days, it was bound for a correction. Currently the DOW is up 2.09% from its 20 day moving average, and is up 10% from it's 100 day moving average! The damn thing can't go up forever! A 12 point move in either direction is statistically irrelevant, it doesn't mean anything!!

Secondly, the idea that the US markets are so stupid in their pricing that they would capriciously sell off simply because the Democrats won a no-brainer election is ridiculous! It has been obvious the Democrats were going to win the House for over a damn month, the market has long already incorporated this into it's price points for every single instrument, and has long been trading accordingly! Unless the Democrats kill Ben Bernake and convince Bush to appoint Karl Marx's zombie as the new Fed Reserve Chief, I am pretty sure the market will be just fine. I mean, give me a break, how stupid do these people think we are?