Discussion in 'Trading' started by matt5555, Oct 9, 2003.

  1. matt5555


    i haven't watched the show kuldow and cramer much, but i put on cnbc tonight for a few minutes and saw a few minutes of the show tonight and what can i say. everyone is acting like its 1999 again. both of them are cheering on stocks saying we are fully recoeverd and everything is going to go up even more.

    they brought on a hedge fund manager and (cramer and kudlow) said "look there is 7 trillion on the sidelines, and all it takes is a little bit to go in and you have captulption (to the upside)"

    when is the madness going to end.
  2. lescor


    When people stop asking "when is the madness going to end?" The market won't go down because everyone keeps trying to short it, then chasing it up to cover.
  3. Thats funny. They really are characters. But the market could go up more, why not? I mean new highs are still being made....... But the market could also go down from here, why not?

    I'm glad I'm not a long term investor...

    I stick to the history channel.
  4. i am not advocating daytrading per se , but all investors need to re-evaluate their positions daily.
  5. mBear


    The big reason the market keeps going up is the infusion of capital into the markets by the public who is hoping it is time to party like 1999. (Obvious.)

    Q: Why are so many traders bearish, continually trying to short the market, when there is more to be made in on the long side, while the daily trend is up?

    A: While they may claim to be technical traders, they are letting their opinions on the fundamentals cloud their trading decisions. Anyone who has studied the markets for years knows that the markets can move in the opposite direction from the fundamentals for indeterminate periods of time. Why fight the trend?

    As traders of stocks and stock indicies, we should be happy that there is a rally. When the market has crashed to an ultra low value, how much volatility will be left to trade? At that point we won't be trading the stock indicies anymore, maybe weather futures? :(
  6. In the long run the public is ALWAYS wrong. Dumb money. They watch these dopes like Cramer, Maria (this stock is on fire!), Joe Bag of Donuts Batataglia and lap it up.

    The sheeple can be right for a period of time, like they were right in stocks in the late 90's through March 2000. But then they lost it all.

    They are right being in real estate right now, but the bagholders buying recently or doing cash out refi's now will have their asses handed to them on a silver platter. Many, more than the stock market losses, will lose it all.

    Bonds were right for a couple of years, people holding them over the next year will wish they had not and give everything back.

    I try to avoid watching Cramer and all of these losers. Better off watching Gilligan's Island or Spongebob. I somehow don't see smart money getting their investment advice from Chuckles the Clown Cramer.
  7. good words...we are all responsible for ourselves. If we don't watch our money, who will? Cramer? :D
  8. cable


    LOL! I guess the secret's out. Spongebob reveals hidden secrets on his show... one time he told me to buy JDS in 1998, and it went up 5000% before it tanked. I should've listened to my dog and sold it before I was bust. :-(

    just kidding. I don't have a dog. It was my cat who told me to sell.
  9. The textbook answer is the market discounts the future. So a lot of money is assuming that after three down years, an accommodative Fed, a Presidential election year coming up, employment picking up, a moderating dollar that benefits manufacturers, there are plenty of reasons to expect at least acouple of years of market gains.

    The real world answer is that, as long as mutual funds and 401k managers get money in, they will buy stocks. The magnitude of inflows can give them the buying power to make themselves right for a long time, screw fundamentals or valuations. A strong market gets everyone from daytraders to the investment club types revved up, and we have the makings of another bubble.

    It's hard to believe we can just shrug off a bear market like we've had, the worst since the Great Depression, and just go straight up. So far, that line of thinking has been a ticket to underperformance.
  10. Bingo.
    #10     Oct 9, 2003