Quote from faure: SnP is at 1433 right now. This China thing is blown so way out of proportion it's almost comical. The bears are actually gloating. I don't trade US equities but it doesn't take much to see the that the time to buy is now. Im not gloating, I think the markets do run higher again its just that now there is alot more fear surrounding these markets. Its nearly impossible to guess where we will be in 2-3 months. Will we look back at this in 2 weeks and think of this as a buying opportunity or be glad we sold AAPL at 84, GOOG at 448 and RIMM at 138??? All I can say is last week many were glad the nasdaq broke 2500 and that the semis looked like they were ready to break out above 490, but it seems thats far behind us now, volume was just insane on the QQQQ today. I think many might fall into another rally were we do race to new highs, however after a day like today many will be aware that a market can only go so high before a severe one day correction takes place.
We went from readings you get at the top to readings you get at the bottom in just one day Based on some indicators I should be buying now but something tells me it is not over yet. I will wait for margin calls for next couple of days and then decide.
My take on this is the following: 1. Cheap dollar still makes US markets relatively inexpensive and very secure. A plus 2. Very good earning coming from the big boys (aka multinationals). A plus 3. Plenty of money from oil floating around. A plus 4. Some $$$$ but a sizable amount nevertheless floating in the US. After all that billion dollars in tax cuts generated by Bush has to go somewhere. 5. Since the housing bubble had burst, the only vehicle left for investment is the stock market. A plus 6. All the mutual funds holding billions of $$$$ in people's 401K, have no choice but hold on to their holdings. How do you switch from owning 40 billion $ in a basket of stocks A,B,C to $40 billion of stock in basket D,E,F without creating chaos in the market (assuming it is possible which it is not, especially in a short amount of time). Adding 1 +2 +3 +4 +5 +6 = market will rebound. perhaps not tomorrow or even this week, but it will quicker then most people think. Also, it depends how the spin heads at CNBC and Cramers of this world will spin it. My guess, they will push dumb money to help bring the market back up. Just my 2c.
I hardly noticed the 'extra' 200 points cause it was just a continuation of the same freaking selling that was going on all day. Guys talk about it like we went from up 200 to down 500 on a whim. Meanwhile the dow wound up near -500 anyhow so the 'mistake' was the least of the reasons. You guys watching the same market as me?
I completely agree, also bro you forgot point 7. THERE IS NO RISK!!!!!!! So that's another huge huge positive in this market right now!! I would say we have a sweet 100% up room to go plus yesterday's drop so thats around 105% right there!!!!