DJIA 10+ of past 11 weeks - wtf?

Discussion in 'Trading' started by tradeshark, Apr 23, 2010.

  1. Cannot say in a few years of trading have ever seen such blind buying in the indexes. I trade the ES and the only reason there is any kind of pullback is general lack of buying and not from selling pressure.

    Of course there is a little profit nibbling from scalpers, but the buy orders pour in, in freaking huge batches on almost every pullback.

    Is this a result of institutions stimulus bucks being spent? Anyone think the fed is outright dictating how their free money should be spent (buy the market to make the administration look good)?

    Dont know about anyone else but this is nuts - and if lack of volume causes sharp pullbacks wait until we see the bears step up in earnest and drill this market - tank.
  2. Got caught short?
  3. Crazy or not, I never argue with the market as it is what it is.

    Markets can remain irrational longer than you can remain solvent. Attributed to John Maynard Keynes.

  4. LOL - play both sides, but I am a contrarian ...waiting for the signal
  5. My post was more about hearing other traders insight/opinion regarding this euphoric trend.

    Also, if there was a consensus as to what the catalyst would be to what will cause a healthy pullback in the indexes on the daily/weekly.
  6. I don't think it is nuts. I think people are coming in late in the game, etc. but I am enjoying it while it lasts. The lack of unqualified bulls show that the rally is young. And I trade both sides too but can swing one way or other for long periods.
  7. There is absolutely no doubt in my mind that it is a bubble, irrational and completely not reflective of any fundamental or technical analysis. That being said, if you want to make money, you have to be a good little lemming and go along.
  8. Oh, and I think the more weeks in a row up is healthier. When the market is overleveraged, it spikes up and down and causes negative autocorrelation. Many in a row is way healthier, think 1994-1997.
  9. Well, to me when unqualified players enter en masse late in the game is euphoria - fear of missing out - and that will get met with qualified selling. Only time will tell.
  10. spinn


    The banks can borrow money at 0.25% from the fed. They sure are not lending it out so they are buying stocks, and oil, with borrowed money.

    Imagine someone giving you a .25% interest credit card with a $1 million limit. If you default, you dont even have to pay it back. If you had that, would you buy stuff for yourself, or lend money to your friends?
    #10     Apr 23, 2010