Maybe it's all the junk food that has got people so crazed that they gave up old-time financial sense and started speculating like crazy. Before the junk food explosion, people wouldn't think of getting a 2nd mortgage unless they were desperate.
Short term bottom is very close. I may sport wood when I see the Dow touch 11,xxx hopefully this week. I was very happy not to see the pre-cut this week. I really hate how the market has been hinging on these f'n cuts but you just have to go with it... Will be intersting the days up to Jan. 30th how everyone positions themselves. I will not be surprised to see a 100bp cut or .75 followed another quick cut. The FED is just repeating history hear getting us down to 1.5%. Absolutely horrible to do IMHO in this envronment. Consequences and repurcussions will be worse later on.... I'm looking forward to the days of rate hike rumors and actions by next year in a full blown stagfaltion economy. All your media pundits won't have answers and be begging for cuts and realize whats being done now was a huge mistake. These a-holes just want to see markets continually rise through credit bubbles. They never end pretty... All I know, there are geart trading opportunities that lie ahead. I am leaning bullish the days prior to rate cut mania. Sell the spike and get the frig out. Will that rally be a follow through? Who knows, probably fade the FED as usual. Just keep things somewhat choppy is all I ask.
That sounded good, until I got ot the end and realized you're that homo who does nothing but find ways to hype palladium. *yawn*
the government will never take over the mortgage industry. thats akin to them taking over the securities industry. loose lending standars and low interest rates kept low for too long is what caused this. then you have supposed wall street wizards make dumb ass bets on various derivatives. CITI bank knew about the sub prime problem more than anyone and what do they do after bear stearns hedge funds blow up and the market tanks in august? they go out and buy a sub prime lender in september. just stupid !
That, and he cites the Zimbabwe stock market as a reference. There probably isn't a more manipulated market in the world, run by one of the most corrupt governments imaginable.
In my years of experience, the greatest time for a swing trade (trade in and out a few days later) was when fear is very high and all the bad news is public knowledge. That is now. I am also looking at the S&P p/e, which is very low. The 2 day RSI and 14 day RSI is also very low. I would say we will bounce from here.
Zimbabwe is just one of the example and may not be the best example. I also cited the Weimar German Republic. I can also cite China and a number of other markets, including the USA market. Any time inflation kicks in, the stock market booms. That is the truth. The fundamental reason is when the inflation is high, people will not keep cash or leave the money in the bank, they need to invest the money for a profit that can beat the inflation. People in China have withdrawn the money and put into stock market, because they have no good place to put their money in. Who is going to hold cash or savings account when the US dollar is dropping so fast?