What are the chances we see another odd midday rally tomorrow where we unexplaniably close in or near the green? With futures down several percent I get a feeling that something will happen before the bell or we will see a huge rally.
I see no possible way the markets even see a hint of green, the news of the ponzi game on wallstreet and auto bailout news should easily keep the markets down to the close. I would be surprised to see the Dow stay above 8000.....
I am calling for a government intervention rally. It is what they have been doing all year long. Whenever the market looks to be in trouble they do anything possible to stabilize it (rate cuts, news releases, buying futures contracts, you name it).
Something like this is going to happen in the morning Bank bailout funds could be used for Detroit http://money.cnn.com/2008/12/11/news/companies/whitehouse_warning/index.htm
Another Friday, and totally WRONG once again. http://www.elitetrader.com/vb/showthread.php?s=&postid=2207941#post2207941 Good thing you are only "paper-trading". I'd hate to see what you would do with your own ( or other people's ) money.
Logically you would think given the news of late that the markets would continue to tank. I would not be surprised to see the S&P head toward 650. But if so, when? Neither would i be surprised to see it hold its present trading range for months to come and maybe even break out to the upside, because, in fact, the economic news is so bad that it could result in buying as well as selling. There are a number of factors at work, so it's a fools game to try and predict near term action. It is better, in my opinion, to take a longer term view without trying to be very precise about when something might occur. It seems we are in a deflationary period, but after that the consensus seems to be that we are headed for double digit inflation. Frankly, i don't think the US has much choice but to try and inflate its way out of the debt spiral it has fallen into. If i was someone holding dollars or US bonds outside the US, or even in the US for that matter, i would be very concerned about the potential for rampant inflation sometime in the next few years. I probably would want to either get rid of my dollar assets and convert to some other currency, if i could at a reasonable price, or if that's not practical because i hold many billions of dollars, i might like to start buying US assets in an attempt to protect against future inflation. And the best time to buy those assets would be during a deflationary period. The assets of US companies, and the companies themselves, can be bought by acquiring stock. Consequently there may be large buyers coming in whenever the market starts to dip lower. These could be foreign buyers and they could be partly responsible for holding up the market. Who knows? I know that i don't know what direction the market will take in the next few months. But i would think that the range bound market we have been experiencing, after a rather precipitous drop, may continue for some time, if indeed there are buyers waiting to step in every time we approach the bottom of the range. And, there seems to be!
I was wrong, I mean after uncovering a $50 billion ponzi scheme and no bailout for those great US auto makers of course the market has to be up. Dont worry im still holding onto my precious short ETFS, I added EVEN MORE on Friday, I started a new small position in SRS and after selling my TZA at $70 I bought it back at $61.00 before the close on. You could keep thinking what you want but Im still calling for the DOW to drop to new lows, my target is 6500, thats when I will start leaning more towards the buy side, with hundreds of thousands of jobs being lost and foreclosures still on the rise there is no reason to think this market is going higher, any rally you see is just another bear market rally, Im going to repeat myself over and over again to help you realize that this market is not done going down.