Here is a perfect example of the excesses in this market. Both are in receivership by the FED and all their earnings are paid to the FED and there is no intent on making it a public company and it is up 4000% in a year.
Just like in the movie Too Big to Fail, the Fed thinks we don't know what is good for us. If you watch the tape, you will see that they are buying above the ask which is blatant manipulation. Retail, Financials and Energy is down today yet the market is supported.
They can say they are doing this for the benefit or the economy, but they are doing more harm then good no matter what the Phds are saying. What happened to Free Market trading.
At this point everyone realizes that the machine trading is based on a set of data points. Over the last few days the machines have become confused and that is causing volatility. When everyone thinks the market goes higher, yet no one is actually buying, it will trigger a response that no one is expecting.
Asian futures are down and the US market is closed Monday going into a 3 day weekend. Just like automatic pilot, at some point they are going to turn the switch off and go on manual to save profits.
They must not be looking at the charts and learning from history. If they don't think the US markets can fall 7% they will deserve every loss they incur. Problem is they are not playing with their own money. They are playing with pension and 401k money of the general public in chasing performance because of their egos and bonus structure. So whether we are bailing out banks or buying stock in an over-bought market when the rest of the world is being rational about why the market is at this level, we pay the price for continued stupidity.
Asia down big, Europe down big, Fed says stimulus is ending in a few months, market at record highs without any profit-taking, commodities down, interest rates up. It will move lower from here before people start bottom fishing.
Did anyone catch the ex fed member on CNBC? He said the Fed strategy was to drive up equity prices to create wealth. I assume this was in place of printing physical cash. Their worst fear is a sideways market because then people start to remove wealth from the system and drives the economy in the opposite direction.
many shorted on open thinking we would see 4% - 5% move lower. All you are seeing now is the covering of those shorts. Breath does not confirm positive move and volume on buying is light. Reports today shows firming in labor and housing market which reinforces that intervention will end soon. Problem is that the market has priced in full recovery in labor and housing and when you take away the stimulus you have nothing to move it higher. You will see it drift lower through the afternoon and back at session lows into the close.
When you see Oil, which makes up a large part of the S&P Indexs and commodities, which is a sign of economic strength continue to go lower, it is yet another confirmation that the only thing holding this market up is the Fed's artificial support.
I would not be surprised if the Fed and Treasury are trying to figure out how to let the air out of this without causing a complete meltdown. This is like dating a woman that all you wanted was sex from, she falls in love with you and now you need to break up.
have you seen AAPL trading today. It was on a path where everyday it was higher, even though nothing has changed since earnings and guidance disappointment. That is what will happen with whole market, but don't catch a rising knife. Be nimble and when the downdraft starts, the stops will kick in and it will fall 3%. Now you are just sending good money after bad because fundamentals and investing are not applicable to this market at this time.
is to buy puts a few strikes out of the money as a wager. When this cracks, it will fall hard and fast and your positions will be in the money quickly. Other then that, like Bloomberg has been saying all day, it is not fundamentals, but cheap money and debt that is keeping stocks at record highs.
we know that the fed and GS are in bed. we know that GS has a large short position, so we assume that the Fed has a long position. The recent daily rallies have given the Fed a good profit position. When they unwind and the market tanks, will the tax payers ultimately pay for the loss, while the Fed improves its balance sheet and GS covers at much lower then now.
think about the hundred of thousands of ARMs that will adjust higher and drop the other show in the housing market. People are just making their mortgage payments now. Another 50 - 100 per month in payments could start foreclosures again. The only wealth that most americans have right now is on paper with the Fed fueling a rally with cheap money. That cheap money will cause lower dollar and inflation with no wage growth. Once the Fed stops buying their will be no one to sell to and everyone will see it in their 401k statements.
Looks like the players are getting some cash ready to buy into the dip that the technical indicators are pointing to. It is taking a lot of resources to keep the index where it is today. May be a head fake to keep retail interested and stay with the trend of everyday up. The funds know that there will be profit taking before the next let up and they want to have cash ready to buy in another 2% down from here.
There is no doubt that some institution is throwing higher bids for small lots to gap the ask higher and try to get some buy program to kick in. The only news for the past two days that matters is most of the world believes this is a bloated market, trading at full employment and reduced government debt. There is no investment opportunity here since the recovery is past priced in and the only thing and investor can expect is lower prices in the next few month. Even for momentum traders, not backing and filling points to huge downdrafts to clear the system for another move up.
This is filled with nickel and dime day traders. Two things are rally killers in stocks without fundamentals or earnings. First, 3 days of straight up. Second, blow-off volume. I am not short or long, but have played these specs for a long time. It will be back to the .80 area in a few days.
Fundamentals are out, momentum is in. Europe cut, new claims decreased, earnings beat lower expectations, fed continues to pump liquidity. Unemployment will be flat tomorrow and Indust Prod will beat. Too many people looking for correction. Not everyone is in, especially retail. When you see huge volume for a few days and less posts on here about shorting, then they will sell the market.
Is anyone else seeing this? How is this an even playing field when the computers trade in milliseconds and then they take the ability to trade away by closing the exchange while the underlying are trading?
Just got off the phone with Schwab. They are saying that the CBOE is not trading on OEX, SPX and some other options. Anyone else seeing this?