Markets are in denial, pending actual meaningful data - like GDP

Discussion in 'Options' started by MacroTOMI, Jul 6, 2020.

  1. When we see Q2 GDP (and there will most likely be a severe contraction), coupled with other data and then start to see Q2 Corporate Earnings being reported, it will be a sudden wake up call
     
    #11     Jul 6, 2020
  2. jys78

    jys78

    Maybe, maybe not. The whole "market concentration" issue in fact has been around since the beginning of markets.

    In the meantime - is it more important to be "right", or to make $?
     
    #12     Jul 6, 2020
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  3. jys78

    jys78

    Only IF these data are WORSE than the market's expecations - which are bad.
     
    #13     Jul 6, 2020
  4. Any so called “wake up call” will be immediately met with more trillions from the Fed and more checks from the Treasury.
    Why fight the printing presses?
     
    #14     Jul 6, 2020
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  5. Obviously we all don't mind making steady gradual money in our permanent long-only retirement/equity portfolios, but a purge would be welcome. It would make for a much better trading environment.

    If and when the Fed stops artificially propping up the credit and equity markets, we could finally have some free markets and real price discovery.
     
    Last edited: Jul 6, 2020
    #15     Jul 6, 2020
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  6. Relentless

    Relentless

    I agree 100%.

    It is what it is though. Works until it doesn't - and there will come a day when it doesn't.

    Meanwhile gotta ride the horse until it dies.
     
    #16     Jul 6, 2020
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  7. Specterx

    Specterx

    IMO we are on the verge of the greatest speculative mania in history - it'll make the dotcom boom look quaint. TSLA at $1400 is just an appetizer. Wait until digital assets embedded in video games are trading for the price of houses.
     
    #17     Jul 6, 2020
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  8. With the Fed and China in a race to out print each other I think you could very well be correct.
     
    #18     Jul 6, 2020
  9. comagnum

    comagnum

    Looks like business as usual to me. Stocks that had high relative strength months ago are leading the charge up. I just follow the price & volume action & leave my opinions out of it.

    Many stuck at home have been using their Fed checks to buy cheap stocks - big breakouts on smaller cap stocks.

    Our most hated bull market in history had been missing the public's participation - now we have it. The last stage of a bull is spectacular, the dumb $ is piling in. The Fed made this possible.
     
    #19     Jul 6, 2020
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  10. maxinger

    maxinger

    Markets are very bullish, even actual meaningful data like poor GDP wouldn't stop it.

    For trading, very important to focus on the chart.
    don't try to reason out / rationalise how
    market trend is correlated to economic data.

    don't think GDP will lead the market.
    Market could lead the GDP.


     
    #20     Jul 6, 2020
    smallfil likes this.