Valuation has never mattered. The only thing that matters is who can afford to hold a position and the amount of leverage that is granted to the players.
Prop traders get 5 to 1 overnight. and as high as 100 to 1 for the day. With these types of ratios, valuation is simply not an issue.
It is all a show. I do not pay attention to any of it anymore. I know how this has to play out because the debits have to equal the credits no matter what.
Thanks for sharing. But now let's get real. If ECB accepts Greek Bonds as collateral, then of course they are accepting worthless IOU's. And if they do not then it simply means that the ECB knows that the BONDS are worthless anyway.
So in either case, it is all worthless paper.
That is all there is to it.
So now we go back to the accounting of how a Central Bank creates reserves.....and where are we?
The reserve is basically a plug in a T account where the Credit has to go since we DEBIT LEFT and CREDIT RIGHT,
So now the action.......it is called running the stops above 2051.25
There was a GLOBEX GAP DOWN that was still open from Sunday night.. Globex gap downs get filled. But are there still buyers above 2062? I guess we will find out. Now the gap is filled.
When you see this action you know just how planned it all is.
As long as "they" do not get hit, then "they" will keep probing upper levels to see where supply hits them. It is all mechanical.
QQQ opened the year at 103.76. Let's see how much demand there is above that price.
it's really simple selloffin321. 2041 is now the level to get back above and stay above. Had to wait for the break of that line, we got te pivot at 2040.75 and then load the boat short for the move near 2019. Can not get any better than that set up that we had today. These setups are always the same. No matter what why would anyone get long today above 2040 is beyond me. Danger up there.
I kind of thought that the entire point of the creation of the Euro was to buy more time for the dollar anyway. So now if the Euro is gone everyone should run to dollars to get out of euros which then allows the Fed to do more damage. Is this logic incorrect?
That absolutely does not matter. What matters is the 5 day high which is 103.18. The 2 day high is 102.58.
Now all that being said......the line in the sand for the panic move up was getting back above 100.92.
It took awhile but I did see the shift and I knew that the shorts were going to get hurt badly. Now here is the question. If you really are a dip buyer did you pick any up once it was proven that sellers under 100.09 were wrong?
That was the play.
What is the tipping point hyper for a debt to gdp ratio that triggers a collapse? Is there an official number? I think it's something like 50 % or so........and then it simply just sets up for a massive implosion. I see this entire index run as nothing more than the last big fart before the #$%$ simply pours out all over the place.
So clearly 115 % has to be even worse.
I hope you sold above 101.36. 100.09 is the middle of the longer term channel and that was tested.
Smart money sold to dumb money above 101.36. That is the bottom line. Really really dumb impulsive money is long above 104.82. Those people are not likely to get out.
That's the point I was making Dunrunnin. There is no other choice but to do what has been done with regard to currency.
GOLD is much like any thing else now. All about market forces. I would rather have food and water and shelter in my lifeboat than a chunk of gold.
THere is not enough gold and silver in the world to function as a currency, so what should be used?
troll, how you start a trading room and show us this stuff live. They went to 46 and stop on the ES because that is where they had to stop to maintain a bullish appearance so they could distribute. Fibs do not show you that and never will and neither will fans.
then 2059.50 is the level that the bulls have to keep it above, buy it and bid it. It's that simple. It's up to them to expand the range and drag the lagging indicators up.
It spiked up on the known news. But the baggies chased it above 2043.25. They now have to be absorbed.
Reality is quite simple. It takes about 3 to 5 years for bad policies to filter into the stock indexes. Subprime lending was a bad policy. It was in full force from 2004 to 2007. When was the first warning shot.
Glass Stegall abolishment was in 1996 give or take. When did the NASDAQ top out and then crash.
This time is very very different. No more Investment Banks. All commercial banks backed by the FED.
Horribly dangerous and the entire game is to paint stock indexes. What will be left is simply a pile of Gov debt with no way to be repaid.