Market Going Up Because of the Government

[Toro]

Not sure how much of this I believe of this.

Robert Reich's Blog: Why the Dow is Hitting 10,000 Even When Consumers Can't Buy And Business Cries "Socialism"

 

[TTPANL]

If Government regulates properly, the market will always go up.

Must monitor the crooks !

 

[Oddball]

Pffffft!

Just wait 'til the printing presses get a-hummin' and inflation wipes out all those paper gains.

 

[DavidS]

Pffffft!

Just wait 'til the printing presses get a-hummin' and inflation wipes out all those paper gains.

Actually the market will be more impacted when the Feds raise interest rates next year.

 

[CrusaderFrank]

Taking advise from Robert Reich on the economy is like asking Martha Steward to rebuild your car engine

 

[Annie]

From what I can see the only jobs gained have been on the fed level. No movement on producers. We're screwed.

 

[Zander]

As I predicted here earlier in Sept, the bear market rally is running out of steam and forming a very nice top. Next stop...STRAIGHT DOWN. We are entering a period of severe declines in all the markets compliments of Deflation. Nothing will be safe; real estate, commodities, bonds, and stocks will all drop and drop precipitously. Oddly the only safe haven will be the US DOLLAR. The dollar is about to start a strong rally against the yen and euro. Take my advice - move all of your assets to short term T-BILLS and do it NOW.

 

[Toro]

Zander

You may eventually be correct but so far, there is no evidence that we are topping out. This sell-off appears to be nothing more than a mild pull-back on light volume in an uptrend. We'll only know if we're topping out at least a few weeks from now.

 

[Zander]

Zander

You may eventually be correct but so far, there is no evidence that we are topping out. This sell-off appears to be nothing more than a mild pull-back on light volume in an uptrend. We'll only know if we're topping out at least a few weeks from now.

Bear market rallies die on light volume. Right now, all the technical indicators call for a major reversal. Next week we have some financial numbers coming out, they will probably be bad. That could be the start of the downturn. Once it turns negative.........look out below!!!

 

[mal]

Zander

You may eventually be correct but so far, there is no evidence that we are topping out. This sell-off appears to be nothing more than a mild pull-back on light volume in an uptrend. We'll only know if we're topping out at least a few weeks from now.

Bear market rallies die on light volume. Right now, all the technical indicators call for a major reversal. Next week we have some financial numbers coming out, they will probably be bad. That could be the start of the downturn. Once it turns negative.........look out below!!!

And?... Markets go up and down...

I'd like to see what some here were Saying when it was below 7,000...

I Know I Heard, just like Gas Prices Never going back Down, that the Market was Done...

Yet it's Pushing 10K again.

And it may Fall back some... It's Fall, after all... Would be Symbolic.

I can tell you this, there isn't enough Credit given to Fuel Prices for this Economic Problem we have Found ourselves in.

When Gas was over $4 a Gallon, it was Kicking EVERYBODY'S Ass...

Things have Seemed to Mellowed since the Price of Gas has.



peace...



peace...

 

[Paulie]

Zander

You may eventually be correct but so far, there is no evidence that we are topping out. This sell-off appears to be nothing more than a mild pull-back on light volume in an uptrend. We'll only know if we're topping out at least a few weeks from now.

Bear market rallies die on light volume. Right now, all the technical indicators call for a major reversal. Next week we have some financial numbers coming out, they will probably be bad. That could be the start of the downturn. Once it turns negative.........look out below!!!

Investors have shrugged off bad numbers now for months.

What makes you think this time will be any different?

As techs go, I do agree that a correction should be coming at some time, since there really hasn't been much of one since the March bottom.

I'm not sure about "look out below" though. Businesses and people have been deleveraging and getting their balance sheets right. At some point, the excess liquidity is going to enter the market in significance, and continue chasing assets. There's really no reason to believe that the CURRENT liquidity trap we seem to be experiencing is going to continue in perpetuity.

I'm not sure we'll see a notable drop in the market until the Fed raises rates. And it looks as though they won't be doing that until banks start opening up and lending again.

Considering the Fed is usually always too late on that, and the fact that the monetary base is at an historic level, what fundamental(s) do you see that points to deflation?

 

[Toro]

I don't know what is going to happen, but as I write this, the SP500 is up 19 and the Dow is up 140. This has been the behavior of the market the past few months. We go up sharply, we have a mild pullback, people get bearish suddenly and the market resumes its upward march. At some point, this will end, but there is no evidence that it is ending now.

That is why that if we are topping, we have to wait a few weeks to know. Topping is a process and have seen scant evidence of it yet.

Other assets may be topping. Copper for instance and maybe oil. They may be sending a signal that stocks are going to have trouble from here.

 

[mal]

Ain't that about a Bitch... It's up 150ish...

Yo, Zander!...



peace...

 

[Zander]

Ain't that about a Bitch... It's up 150ish...

Yo, Zander!...



peace...

If you are bullish, buy stocks!!

Personally, I don't try to predict the daily gyrations of the stock market, I look at the long term trend. Right now the long term trend is down. This is a classic bear market rally that is running out of steam. I will be content to sit on the sidelines in short term treasuries.

 

[mal]

Ain't that about a Bitch... It's up 150ish...

Yo, Zander!...



peace...

If you are bullish, buy stocks!!

Personally, I don't try to predict the daily gyrations of the stock market, I look at the long term trend. Right now the long term trend is down. This is a classic bear market rally that is running out of steam. I will be content to sit on the sidelines in short term treasuries.

I have been Buyin' Shares CHEAP for a while now...

Those who Pulled out, Paid Penalties and Taxes...

I am WAY Ahead of them, and I don't have to Buy back in.



peace...

 

[Paulie]

Ain't that about a Bitch... It's up 150ish...

Yo, Zander!...



peace...

If you are bullish, buy stocks!!

Personally, I don't try to predict the daily gyrations of the stock market, I look at the long term trend. Right now the long term trend is down. This is a classic bear market rally that is running out of steam. I will be content to sit on the sidelines in short term treasuries.

I haven't really seen you provide a comprehensive analysis on why you think we're looking at deflation.

Could you? Because I'm really interested in hearing why you think so.

Forget about technicals, I'd like to see you use fundamentals in your assessment.

 

[Oddball]

I don't know what is going to happen, but as I write this, the SP500 is up 19 and the Dow is up 140. This has been the behavior of the market the past few months. We go up sharply, we have a mild pullback, people get bearish suddenly and the market resumes its upward march. At some point, this will end, but there is no evidence that it is ending now.

That is why that if we are topping, we have to wait a few weeks to know. Topping is a process and have seen scant evidence of it yet.

Other assets may be topping. Copper for instance and maybe oil. They may be sending a signal that stocks are going to have trouble from here.

Then it's arguable as to whether gubmint's making the market go up (a dubious argument if there ever was one) is a band-aid at best and a complete mirage at worst.

 

[KittenKoder]

Let me guess, the government is also taking the credit for the sun coming up this morning, since it went down last night.

 

[Toro]

Then it's arguable as to whether gubmint's making the market go up (a dubious argument if there ever was one) is a band-aid at best and a complete mirage at worst.

I don't know.

It is also arguable that government stepped in and bought the market when it was cheap when the rest of the so-called intelligent investment community was running for their lives like chickens with their heads cut off.

Of course, government is always wrong...

Former Federal Reserve Chairman Alan Greenspan, who in 1998 criticized Hong Kong’s central bank for purchasing $15 billion in stocks during the Asian financial crisis, now calls it a savvy move.

“It turned out that his timing was exquisite,” Greenspan said, referring to Joseph Yam, who plans to retire Oct. 1 after 16 years as chief executive of the Hong Kong Monetary Authority.

“It was a risky action, but he pulled it off,” as share prices rose for several years, the former Fed chief said in a telephone interview today. “I wouldn’t recommend that as a general rule for central banks.”

Yam, 60, bought the shares 11 years ago in a successful effort to defend Hong Kong’s dollar. Greenspan told the House Banking Committee in September 1998 that the strategy would fail and erode “some of the extraordinary credibility” of the HKMA.

Greenspan Says Hong Kong’s Yam Was Right to Buy Stocks in 1998 - Bloomberg.com

The Hong Kong Authority made a fortune when all the "wise" investors thought it was a good idea to sell stocks at generational lows.

I spent a week in New York at the beginning of February, meeting some of the smartest people on Wall Street, and they were all convinced that the world was falling apart. Every single one of them. Well, OK, that's an exaggeration. One person thought stocks would be higher 10 years from now.

 

[Toro]

If you are bullish, buy stocks!!

Personally, I don't try to predict the daily gyrations of the stock market, I look at the long term trend. Right now the long term trend is down. This is a classic bear market rally that is running out of steam. I will be content to sit on the sidelines in short term treasuries.

I've been selling stocks as they hit my price targets because I agree that it is probably a bear market rally.

The problem is that everyone I know thinks its a bear market rally. Usually, when everyone I know agrees on something, it turns out to be false.