Its a levitation act, this stock market. It feels unnatural, almost unbelievable. Why is the stock market going up while the economy is still in a deep recession and has 10.2% unemployment? How can oil be at $80 in this scenario when 3 years ago, with a decent economy, oil was at $60? Its hard to believe, so that's why we've seen the low volume. The buyers are not plentiful, for sure. But there are just so few sellers. Shorts are very reluctant to get their heads bashed in again. Those who don't believe, either sold already or are waiting for that elusive 8-10% correction to buy. So the rally goes on, until it exhausts itself by going too high and succumbing to the forces of fundamentals.
Yes, in the mean time enjoy the magic carpet ride. The bears were wrong again, myself included, this market is heading to 1250+. If there is to be a correction it probably won't come until well in to 2010.
I believe that the fed is getting a Cramer like pleasure at the repeated destruction of the bears his money policy is creating.
Why would there be a correction? The banks don't have to take any losses, they are making money hand over fist with free money. Any banks that can't keep up are dumped down the FDIC hole where the best of their assets are sold off to other banks and the worst quarantined so they can do not harm. Corporations should beat earnings estimates with the productivity numbers we have just seen and the bare bones workforce (meaning higher margins). Unemployment extended. Seasonal hiring coming. USD supportive of equities. Rates remain low despite issuance. If they can keep a lid on Iran/Israel I don't see any catalyst for a correction until well in to 2010 and maybe 2011.
Hard to be a bear when the market goes up almost everyday, and then the down days come all in succession for a week, and then back to straight up moves. Once the bears catch on to a downtrend, it ends within days. And then back to short squeezing. A very hard market to trade for a bear. There will be better short opportunities next year, at higher prices. Right now, its best to be nimble on the short side.
They have figured out where the bears enter the patterns. The question is: Who are they? And are they working for the fed? Certainly they are working with the fed's recently created money. "Come see us at the discount window". Play now, pay later.
boy, that's no shit. what tiny entries there are, have no follow through, and have an immediate squeeze i know it's bad to blame 'someone' out there in trading, but it really does feel like there just jamming this thing relentlessly what's weird, is that you would think they would try to make it feel more like a regular bull market bull markets generally do not come in one big power spike from a crash bottom straight to new bull highs
if u could see the book u would know where to squeeze the bears also...especially if it was not ur money to trade with!
Just print some new money, legislate some stimulus, add a few well placed superbots, spin all econ data to be somehow positive, throw in daily pumps by various officials and network(s) that would rival a pink sheet penny stock fake news release and BAM!!! Instant super bubble! Did I mention the main ingredient? Must keep that dollar down at all cost. It's only our savings that will be worthless when the Dow reaches the old highs.