It looked like it could go either way a couple of days ago. But some fed heads said that sub-prime is not a worry. Did traders take that to mean that sub-prime won't get as bad as some people thought? Because they (fed heads) made an implicit bailout promise? If the gov't has promised a bailout, there is nothing to worry about, right?
The market went up b/c there were more buyers then sellers. As to why that was, who cares? You'll never know for sure, it's all speculation. And if you did finally find out, what use is that now? If we were on a long-term buy and hold forum, sure let's debate. But this is a trading forum. Guys here literally trade for seconds or minutes.
Mr Schiff gets my "Eagle Talon's Grasp of the Obvious Award" for July, 2007. He is the first such award winner, and should be proud. Without consideration to me, he can put this on his resume. That is, if he retracts everything below paragraph 6 where it sinks into a rant. Methinks that Mr. Schiff is one of those formerly 'upwardly mobile' schlepps that is now facing a refi w/o the means...at some previous point he gladly took the bait, but is now bitching about the hook. Tough shit, amigo Then it ends up in a compost pile of "Damn Right I'll Shill For My Book"........
Put simply, the market is going up, because it had gone up recently; herd behaviour somewhat. The economy is fine, so even if home prices are dropping, home owners are not too desperate to sell them -yet-, as they still have jobs and income.
Region dependent, most of the country is not doing like you say. Prime areas, like the happening metropolitan have enough stabilizing base.
The economy is terrible. People are thinking it will go up....pricing in. Dollar getting destroyed well then big blue chips that sell abroad (mostly of the DOW) get more REV. ahhhh. Better earnings. Altough I can't figure one thing out what's up with the oil, why hasn't it effected the market. Hmmmm.....well if it doesn't effect markets who cares right.
The market likes to move so it hurts the most people (is it really true? I don't care but thinking it's true often seems to work...). I also like to believe that technical reasons cause a lot of the market's movement (again - is it true? I don't care but since I trade using charts - it helps me to think so...). The SPY / SPX made it's 2nd lower low on 7/9. The mkt was overdue for a seasonal correction & many of the hedgies that weren't yet short got short (There's been recent news about the number of shorts & hedge funds having the lowest longs in ....). The bounce of many indices off sup on 7/11 (SPX, OEX 50dma & Naz break-out level, etc.) caught many on the wrong side. Screaming shorts provided the fuel and a few bulls supplied the matches ... R