Investors Itching for a Pull Back May be Disappointed

Discussion in 'Trading' started by S2007S, Feb 15, 2011.

  1. S2007S


    See how quick the headlines start to pour in when the market sees the slightest pullback, they make it sound like that no matter what this rally will continue and continue and continue as if there is nothing to stop it, this is the same exact feeling there was in the markets in 2007, no one expected a 50%+ drop to come, but it did and the same thing is going to happen again. Will it happen tomorrow or next month, who knows, but even if the dow does still rally another 25% this year and another 35% next year and pushes the dow to 20k+ by the end of 2012 dont be surprised to see another 50% collapse in the market back to 10k or less. This has been the game over and over again, the markets can never have a steady climb higher its always a jump a peak and then the collapse and that is because the markets are being pushed up by asset bubbles. The same thing went for the nasdaq bubble in 2000, the oil bubble, the housing bubble, the credit bubble, the private equity bubble, do you see where this is leading to. The economy only grows when there are asset bubbles, and you can see over the last 2 decades growth has only come through the creation of bubbles. Thank Bubble ben bernanke for his latest bubble creation!!!!

    Wednesday Look Ahead: Investors Itching for a Pull Back May be Disappointed
    Published: Tuesday, 15 Feb 2011 | 8:31 PM ET
    Text Size
    By: Patti Domm
    CNBC Executive Editor

    Investors looking for a pull back are wondering if Tuesday's stock market weakness is the start of a quick sell off, but it may not be.

    A trader at the New York Stock Exchange.
    Photo: Oliver Quillia for
    A trader at the New York Stock Exchange.

    "The general feeling is everybody wants there to be a pull back. Everybody who has not jumped on board is not looking at this like it's over, and they want to short this market. Now they're looking for a pull back because they want to get in," said Marc Pado, U.S. market strategist and technical analysts at Cantor Fitzgerald.

    The Dow fell 41, or 0.3 percent to 12,226, and the S&P fell 4 to 1328. Stocks reacted to weaker January retail sales, which came in below expectations, and a rise in import prices of 1.5 percent. Retail sales gained 0.3 percent.

    Pado said he is watching the cumulative advance decline line, which hit a record high Monday of 119,782. In late August, it had been at 90,178. The higher number suggests market participants are buying a broad selection of stocks, not just focusing on a top tier.

    "It's making new all time highs, above where it was when the Dow was at 14,500..It has a natural tendency to rise. When it diverges, it means money is going into fewer stocks, and that makes it a little bit of a caution. When breadth is confirming the trend, it means money is going into a broad range of stocks," he said.

    Another positive trend is that the Russell 2000 is now outpacing the S&P, he said. "The big picture is that it's very positive confirmation that the market is going to head higher this year, but short term we're obviously seeing a heck of a run. The S&P up 13 percent since the last day of November. It's up 27 percent from the August low. We're talking about bull market moves in five months. You would expect the market to take a breather and there's nothing wrong with that. We've seen real resilience. We've shrugged off Egypt. We had one bad day," he said.
  2. Not going to happen unless a nuke hits the colo in Joisey.
    Maybe 3% pullback then.