Is this Selloff Japan or Trump?

Or... another theory.

"Wow, that escalated quickly!"

-Ron Burgundy

Dear Fellow Expat:

The whole selloff is quite a mess… but different than one we’ve seen in recent years.

Markets don’t react like this unless there’s something bigger happening.

Usually, it’s a massive market event that upends months of gains.

Markets take the escalator up and the elevator down when discussing momentum.

When there are these big events, executives typically call the bottom. They step in, buy their stocks, anvaluabld view them as a value if shares fall to a certain level.

That’s not happening at all right now. As I noted this morning, insider buying has been extremely weak in this selloff, signaling that the bottom isn’t quite here yet.

The five-day moving average, the blue line below, shows the ratio of buying to selling on an aggregate dollar level. When the line is at the bottom of the chart, it means selling is extreme.