How to Tell if the Market Selloff Has Hit Bottom
Anyone trying to make sense of the stock-market plunge by focusing on President Trump's tariff yo-yo was left scratching their head at the start of this week. Shares in Tesla, run by Trump's chainsawer-in-chief Elon Musk, plummeted 15% on Monday to take them back below where they were before the election. Yet shares in General Motors and Ford, both much more exposed to tariffs on steel, Canada and Mexico than is Tesla, actually rose, bucking the wider selloff.Tariffs were the wrong place to look for an explanation. Look deeper into the trading dynamics, and a picture forms of the broader market forces that sent stocks into correction territory this week.The odd Tesla/Ford moves were more likely driven by what Wall Street types call capitulation. That's when traders have thrown in the towel and are closing out bets they had been holding on to in the hope of a turnaround.Blame the army of individual day traders who obsessively follow Tesla . These speculators finally gave up as Tesla los