This might come as a complete surprise to you, but TRADERS couldn't care less about what the catalyst is for prices rallying . . . Their job is NOT to reason WHY ( as you always do ), but instead to simply sell or buy. It's pretty simple really. But I guess you are too stuck on your need to watch all of the pundits on CNBC 24/7 and how they and the 6 o'clock news rationalizes why the market did what it did in a few tasty sound-bites.
Yes the fact that it is simple makes for complications in the vast majority of people's minds. If the Indexes de-couple from the underlying, then their prices (not values) will account to nobody. Then the dollar can be allowed to seek a competitive level and foreign creditors can be more than satisfied from the rising Indexes as can the 401Ks. If this happens, then I do not want to be around when the next big bang occurs. regards f9
I expect the DOW to be @ 14K by late 2009, off course at the same time, plan to pay $10 for small fries, hotdog, and small drink, and not in Manhattan. Everything will go up as an adjustment to inflation, so why shouln'd the DOW & S&P.
I personally think that this latest market rally is merely a dead cat bounce. Once the lack of consumer buying power is fully absorbed in the major industries as a result of more and more layoffs, and decreases in manuf. productivity...the market will revert to take another fall.......
Stock Trad3r, Are you getting your information from kiplinger, CNBC, or Money Magazine. Duh, inflation isn't a factor, What do you think will happen, oh Im sorry the dollar is backed by the full faith of the US Govt, everything is okay. I consider myself smart, educated and lucky to be retired on the beach, and trade for a living. Listening to CNBC for a good laugh and alway's reading elite trader realizing that there will alway's be people like you that I will make $$$ off of. I can't tell you if the market will go up or down tomorrow, I would rather it crashes since fear moves prices lower than greed, plus it takes time for me to change my workspaces to a bullish stance. What I do know is that you don't need much brains in today's world that inflation is around the corner, even the entrails of a goat will tell you that.
I think the markets may go up a little higher but there is going to be more bad news. We aren't out of the woods yet (some say we haven't really entered yet). We may get a few rallies, but they are artificial. I would wait a while before getting into equities for the long. That is just me though.
even if US market opens lower the funds will bid it green anyway and we'll close up 240 points at least
whats wrong with the theory that the fed,the banks,and the clearing houses are just one big account and we are the other team, they have wiped out mom and pop ,taken many industries so low they are begging for mercy and they will buy them for a penny and the corps will thank them,and we are the magicians distraction,just yo-yo -ing the market up and down ,while the audience looks on at the pretty assistant,they are cleaning us out ,the final part of the plan This market is almost ready to tank,it will be done before bush is out of office.