The Dow will test 27,000 by April 16th

Discussion in 'Stock Market' started by william the wie, Mar 12, 2018.

  1. william the wie
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    william the wie Gold Member

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    Two simple arguments

    Because the ten year treasury yield went down to 2.87% today at auction, all investment discounting techniques will also see the numerator stay more or less the same while the denominator shrinks. That in turn raises the value of equities

    With total after tax wages going up for the nation as a whole more money will be fed into retirement accounts but some of that will be last minute additions more money in the market also means higher stock and bond prices..
     
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  2. ABikerSailor
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    ABikerSailor Diamond Member

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    I think it will see 20,000 before it sees 27,000.

    The Dow dropped 157.13 points today to close at 25,178.61. I've got a hunch investors are going to start selling when other countries start their own tariffs on American goods.

    Harley Davidson is already saying that Trump's tariff plan is going to cost them around 30 million, and they are already saying they are going to layoff some jobs.
     
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  3. william the wie
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    william the wie Gold Member

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    You are assuming rationality on the part of speculators and investors. All that matters is how much money comes into the market and how much leaves. With low margin rates and tax refunds a lot of money is going into the market.
     
  4. saveliberty
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    saveliberty Diamond Member

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    I think that is too short a time frame for 27000. We have monthly inflation reported Tuesday and a likely interest rate hike next week. I am more interested in what range we see trading.
     
  5. MarathonMike
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    MarathonMike Platinum Member

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    I like the way you're thinking. The Tariff situation needs to be worked through with the EU and China. Honestly that concerns me more interest rates. I'm still standing pat with core holdings and trading.
     
  6. frigidweirdo
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    frigidweirdo Platinum Member

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    And the higher it goes, the harder it will fall.
     
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  7. william the wie
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    william the wie Gold Member

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    Still on track with the inflation report.
     
  8. Rambunctious
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    Rambunctious Gold Member

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    Buy buy buy.....
     
  9. william the wie
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    william the wie Gold Member

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    Selling puts on stocks with good fundamentals is more of the heads I win, tails you lose kind of situation I like. But to each his own.
     
  10. saveliberty
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    saveliberty Diamond Member

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    Tariff Wars are the broad market driver for the moment. Looks like we retest the lows, then we shall see.
     

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