Markets Inch Into Double Top As Propping Continues

Discussion in 'Wall St. News' started by inthemoneystock, Jan 5, 2011.

  1. Light volume and Federal Reserve propping continue to push the markets higher on the back of bullish ADP Private Sector Employment numbers. Private Sector Employment saw a solid gain of 297,000. The markets cheered this number but still opened initially lower on a very strong Dollar. As soon as the markets opened, Federal Reserve POMO started to push the markets higher. Light volume and new money flow for the new year have pushed the markets into a key double top. The SPDR S&P 500 ETF (NYSE:SPY) has hit the key $127.60 level which was the high from Monday. This should be short term resistance and a sticking point for the markets.

    Also, helping the markets move higher was the Dollar. After opening sharply higher, the Dollar has fallen slowly lower. The markets trade inverse to the Dollar thus continuing to float higher. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) $23.08, +0.20 (+0.87%). It made a high early in the day at $23.15.

    Many commodity stocks opened sharply lower on the back of the strength in the Dollar, however, many have moved to the flat line if not positive as global optimism has grown and the Dollar has pulled back. The Federal Reserve continues to have a bubble making policy where they are artificially inflating asset prices. While this will end worse than the housing market collapse in 5 or more years, in the short run it works to prop the economy up.

    Gareth Soloway
  2. S2007S


    The propping will continue, who knows how long it will keep going but everyone knows what goes up eventually comes down, at dow 14k back in 2007 no one was predicting dow 7000, well it happened and not one money manager or great analyst on cnbc ever spoke of the dow getting back below 10,000, they only only spoke of a continued rally where stocks would just keep going higher and higher like they did in 2000 when the tech bubble burst. Right now the dow could rally to 20000 by mid 2012 and sell off 50%+ leading it right back below 10k.

    This rally is being artifically driven by trillions of worthless dollars but all the other great market pros will tell you otherwise, they will tell you that growth is real and that the economy is turning around, that the credit crisis is long gone and a new beginning for economic growth has arrived. These are lies, take away Bubble ben bernanke, Pomo, tax credits, bailouts, stimulus, QE 1 and 2 and eventually 3, 4, 5, 6 and 7 and see the economy stand on its own, it CANT, the economy cannot function on its own any longer. The economy has become so accustomed to these free handouts that it can no longer sustain its own mechanism of organic growth. This economy only knows how to sustain itself through the creation of asset bubbles and free worthless greenbacks!!!!!!

    Welcome the new economic cycle of asset bubbles!!!!
  3. It was almost comical how f'd all of these former bull market geniuses were at the depths of 2008. One trick ponies, ALMOST all of them. There were and are a few exceptional talents that did sidestep the carnage, but they are rare and usually aren't the ones trying to peddle their influence for favorable bailouts to save their asses.

    Now that we are back in the bubble economics phase of our "robust" economy, these same asshats have resumed their behavior and want all of us to forget how badly they were clobbered just two short years ago.
  4. patbird1