If it doesn't pop soon, it won't pop after October... no way they will let it get that close to the end of the year and then let it fall. You can't compare anything that happened before last September to now. Last year's oil bubble was just a standard bubble - it could have popped any time, it just happened to pop in the middle of the year. But this year is very, very, very different. The entire world is watching the stock market indices right now in a way that they were not doing prior to last summer. The government knows this, and that is why it is interfering heavily in what is going on. The big players know that the government knows this, and are piling on. It is a VERY different scenario to anything we have seen in the past few decades. You can't use standard analysis when you are in a special situation like this, and that's what lot of people don't get, which is why they have been getting royally skewered on the way up. Trading is about understanding the environment and outhinking your opponent, just like poker. This rally could retrace past 10,000 and still be a bear market bounce. It's only 300 points away right now.
What if....stocks are the new housing? In terms of pumping up the economy? What if stock investors, like practically everyone in these forums, 'get rich', and take our stock earnings, and start hiring people, start creating things, start the economy back up? People can diss what George Bush and Gree[d]nspan did in 2003 -- but it got the economy moving again. Just that, the wrong industry end up moving -- housing. Maybe they're going to get it 'right' this time. I mean, just look at 3 factors: a) The pent-up demand for US-produced goods and services, from China. They own trillions of dollars worth of our debt, which means that somehow, we're going to have to crank up the economy to repay them. b) The pent-up demand for retirement products from savers worldwide. Those 0% savings accounts, which are losing money every day to inflation, aren't going to satisfy the millions of boomers who have money to invest. Or the middle-class of China/India/etc. who have crazy money to invest right now. c) Stock markets worldwide, in particular, the US, have been selling off for years, Japan being one of the worst examples, while earnings have consistently been improving. Is this sustainable? Eventually, earnings will have to flow through to investors.
Buffet is buying after a 50% rise in equities? Where was he in March, I wonder? Maybe he really was accumulating his real position then, and now he's just saying that he's buying so the dummies can jump in and make his purchases rise some more. On the other hand, if he really has started buying now for the long term, he's a moron. Prime example of why only idiots use fundamental analysis and economic data to trade... it will only get you in AFTER a large part of the move has happened.
This is getting funny each day, its almost a given that the market is being manipulated, does anyone not notice this at this point. Should tick up 100+ points by 3:45.
A manipulated market where the intentions are clearly spelled out is a gift. How many other times are you going to get information that tells you the direction that big money is consistently heading for months on end? I am consistently amazed at how many people are still shorting this thing, given that we've known this since at least April.
The fact that Buffet sees value here has to be disconcerting to shorts who see the market as overvalued in the extreme. Still feels like we are in the meat of the move rather than topping. I took off half of my position today mainly because I was overleveraged but will continue to play the overnight dip game and ride the rally with remaining calls. Well put FB123, I wish I had listened earlier.
"Benchmark indexes extended gains after Buffett told a conference in California that his Berkshire Hathaway Inc. is âbuying stocks right as we speakâ and heâs getting a âlot for my moneyâ in equities." Has Buffett joined the propaganda ministry?? Or is the credit bubble too difficult to understand? For a long-term investor not to be a net seller at these levels must be either totally clueless or just lying.