Is this market a bear trap?

[william the wie]

I believe we are in a trading range that will play out over several years.

But I could change my mind if I think I'm wrong.

what DJIA or S&P range do you expect? I know the arguments for continued upswing and for downturn but all the range arguments I have heard rely on wild swings:

The US consumes less until a major exporter to the US goes belly up. During the crisis lots of money flows into the US and consumption increases for a a time until the slow sink resumes.

However looking at the results for Japan when it played this game with us two decades ago I think it might be difficult to get play dates in the future.

as long as 401K's are force feeding the stock markets it seems unlikely they can fall below current levels for long. 10,000 has been the magic resistance number for almost a decade now. "Conventional wisdom" still says that long term stocks always exceed inflation. That will likely remain true until the US pension system is overhauled.

I thought the asset allocation shifts to bonds had more or less stopped the end of the month effect being larger than the options expiration effect. I could be wrong but that is what has been reported lately. The bond bubble certainly supports the allocation shift theory as well.

 

[Jacob Adom]

Stock market can be a trap for those who don't invest cautiously. If you want to become a pro in stock market trading, then visit OTC Bully for tips on how to invest your hard earned money.

 

[SteadyMercury]

Stock market can be a trap for those who don't invest cautiously. If you want to become a pro in stock market trading, then visit OTC Bully for tips on how to invest your hard earned money.

Yes, that is who I'd believe... someone who claims to know the key to making money in stocks, but instead spends their time spamming message board about said key.

 

[william the wie]

Stock market can be a trap for those who don't invest cautiously. If you want to become a pro in stock market trading, then visit OTC Bully for tips on how to invest your hard earned money.

Yes, that is who I'd believe... someone who claims to know the key to making money in stocks, but instead spends their time spamming message board about said key.

And using the wayback machine to do it too.

 

[AdvancingTime]

An unholy alliance of the Federal Reserve, the government, and the too big to fail has left those of us who question the validity of the recovery in a precarious position. For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the timid and weak bears out of their positions in this manipulated market.
Over the years we have witnessed the type of market reversal the big banks supported by the Fed can generate with a concerted effort to buy S&P 500 index futures at crucial support points. This has proved more than enough to turn the markets from red to green in the blink of an eye. The article below looks into why even if they are right bears should not be confident.

http://brucewilds.blogspot.com/2014/04/bears-have-little-reason-for-confidence.html

 

[william the wie]

Running the stops goes back to the 1830s or earlier.