True, but that's when I will being to bank profits, personally. TA works differently on the ES in that bullish patterns still work, and bearish patterns stall the market (maybe a slight correction) rather than precedes a decent drop. No way. There wont ever be a huge huge drop of such percentages on teh ES. It wont be allowed. Rules will be put in place again to ensure the upside bias remains (think 'uptick rule', new reduced 'limit down' figure, more frequent weighting of the S&P to quicker get rid of underperfoming stocks etc etc etc) We go UP in the ES. it HAS too
maybe they should have not gone into debt to buy mcmansions and leasing bmws to look rich and they could have lived below means and saved up capital to build a trading portfolio.
I agree on your assessment of next collapse. However, I think one calamitous event (at any point in time) could trigger this mass selloff. You have to remember that over 70 % of daily market activity is now controlled algorithmically HFT-based computers. A calamitous event can lead to indicators pointing in the opposite direction, which can cause flash-crash-like events to occur, at the drop of a hat. I believe that we will see such a crash in 2011.
Do you even understand what you say? Fed failed miserably with QE2 and was not able to achieve lower yeilds in bond At some point bond yeilds will be much more important than the stock market now imagine - in 3 months dollar goes down 15%, 10y bond is above 5% that's very real possibility what Fed will do? they won't be able to print more as oil will be around $120-130 by that time they will engineer market crash as it will be their only choice to prevent bonds from crashin and not inducing hyperinflation it's like Japansese had a choice 1% bonds and 10 000 Nikkei or 10% bond and 40 000 nikkei
Something is going to give sooner or later, the fed will be stuck trying to pull any magic trick they can if the dollar were to drop 10%+ and the 10yr bond rise above 5%. They think they have the solution, I guess everyone thinks they are doing everything correct when the stock market is going in only one direction, sooner or later that comes to an end as well. Bubble ben bernanke is doing this all wrong, his cheap easy money policies followed by QE, 1, 2 and 3 and 4 will only cause more stress on the system moving forward but for now as long as stocks are going on up on a daily basis no one seems to care what he does or how he does it. Let Bubble ben bernanke think he is fixing everything when in reality he isn't doing a damn thing to make things better.
At least 10 years from now Ben will have one thing to his credit: Bringing about the birth of the Islamic nation and a new middle east. Printing money has many effects indeed...