Seriously, money managers are all in, and those who aren't could care less if it goes higher, because they know it will correct. There really are not very many shorts left, so how is it possible this market continues to go up day after day, where's the money coming from?
Note to kibbles....I'm not short, so don't bother responding to my post.
Much of the money to buy stocks is borrowed money through stock buy backs and margin. Many corporations are increasing earnings through stock buy backs despite negative revenue growth. This way earnings increase because the share base is decreasing despite flat or negative revenue growth. This is going to end badly for sure. The question is when.
Imo, the 'real money' doesn't exist except for monthly pension funds buys. Mutuals are not selling and neither are commods funds or anything in the name of speculation. There are just computers trading among eachother and everytime a short appears, it is taken out really quickly on any individual stocks as well as a heavy long position, rinsed out. Sooner or later those trading systems that are doing this will malfunction and when they do another flash crash will result. Will be covering my last short tomorrow in the am if we move a bit above 156.80...
You are 100% correct. And to those below... Ben's money isn't enough to do it when the rest-of-world decides to sell. His money never HAS been enough and never WILL be enough. (How could May 2010 or late 2011 have happened if it were true?) Ben's money is exactly what experts refer to it as... "...helps 'suuport' the market." The recent melt up is is simply lack of Shorts and what kone2410 said.
The market crash in the coming weeks will be historic. Might begin Thursday when banks re-open in Cyprus and/or when North Korea attacks one of our US bases.
Sentiment: Strong Sell
This is not real money. The Fed has less actual money in its vaults than Kibbles does, and I don't mean the Yahoo! MB Kibbles, I mean the REAL one that is actually broke and doesn't trade because of years of losing all his money on lottery options.
All of this "money" is electronic. It is just borrowed electronic "shares" that pushes prices higher forcing YOU to buy or cover at a high price... at a later time they tank it,force you to sell low and replace all those borrowed shares. As long as they don't overleverage themselves at any given time, this is a game they can't lose using their little bots... when they do f-it-up, you see flash crashes and MMs like Knight get forced to file bankruptcy (can't make mistakes with FED money).
They have at least one good punch left in them to the upside, then you'll see massive short-covering... and THEN, that should do the trick. Look out below.
What do you mean "anyone"? I thought almost *everyone* knew where the money is coming from.
"Bailout Ben" Bernanke prints it up in large bales, then carts them off to Jamie Dimon and Lloyd Blankfein, who hire a crew of guys to shovel them into the stock market.
They're under orders to do some extra shoveling at times when there appears to be a technical breakdown, or the chart needs to be painted at the end of the day to create an artificial bullish pattern to draw in more technical traders.
Yep - interesting that the majority seem cautious and agree that now is NOT the time to buy in....so you have to be suspicious about who and why when reality is incongruent with sentiment. That's the ever-widening disconnect.
Indeed, even Cramer said this is not the time to buy in, although he'll figure out a way to waffle around that advice.
I mean, what are they trying to do, close above 1565? And they think that will bring more fools into the market? I think that will have the reverse effect, but that's me.
margin and debt - a few wall street firms are borrowing big time to pop up this market based on the false promise that the economy improved
= 260k a new jobs created (in facrt 100k of full time jobs eliminated and 300k of part time job created)
= retail sales improved (y-o-y actually decreased - only adjusted we went up!)
= ORCL FDX CAT DE MCD all revised down