The big sell-off on Friday was caused by cascading runs on big momo stocks, very similar to Thursday's action. Options were not at play here as the options volume was extremely light.
It can't be rotation because almost every single stock was down and treasuries rallied back to 2.72. Every stock on my watch list was down, and my watch list has a wide number of sectors.
I still think we will eventually hit under 2% in 10-year treasuries this year, especially if Republicans get more seats and the economy improves, regardless of tapering. (less deficit spending, higher risk in holding stocks as QE winds down), but we still might get another attempt at 200 this year before we fall back to 130-150.
A few thoughts on your thoughts: 1. Options are ALWAYS in play; stock market movements are predicated on what is happening in derivative markets 2. I agree we are headed for a downturn, but it will not be as steep as the one you are predicting 3. It will break 200 at some point this year
We pullback to either 173, or 160 in the worst case scenario. There are still too few Americans in stocks, and scaring them away at this juncture would be the last thing "they" want to do. Ultimately, the QE experiment will lead to complete destruction of the US financial system, but that is still a few innings away.
be more than mildly curious about what EXACTLY you think the
pukes will do when they win the elections? why in your estimation
have they waited close to what will be 16YEARS TO DO anything?
and why now? what's changed?
I have no faith in any politicians so.......not like I'm a dem or anything