the market is seeing something that we are either ignoring or just dont see yet. Markets just dont crash this far and this fast for no reason. Bulls will always say its an overreaction but reality may be pointing to something more ominous.
Stupid Algo's and Coders, which all follow Momentum/TF strategies. Which ever way the wind blows, they super charge it... No wonder firms being ran by coders are useless and investors pulling out at a fast rate, but mainly it's BDC's, CLO's, Brexit, China's banking system is a giant ponzi scheme, a lot of bad stuff brewing. The fed can turn it around at any time... Once you go down the rabbit hole and really understand the game, the fed is equivalent to a cheat code. They have so much volume and buying power, if they buy huge lots of sp500, firms front run them and start buying as well cause they see it coming, vice versa. At any time they wish to reset the cycle, they can, and at any time they want the sp500 to moon, they can. Powell pretty much came out and said, we are thinking about ending the business cycle in 2019, we are not sure yet, we will re evaluate our decision early next year. The coders are reacting, rightly so... The dilemma seems to be big money really believed they wouldn't pull the plug on the cycle so quickly, and I wouldn't be surprised if some big money got trapped, and looking for a window, so they got munchkin to do the bidding
Isn’t almost 10 years without a 20% drop long enough? I mean seriously. Markets aren’t supposed to do what the Fed’s decade of free money allowed them to do. Personally I love it. I was tired of hearing every CNBC clown saying “I would use this pullback to buy” and I would look at the chart and the stock is like 1% below its all time high. That shit went on for years! Time to pay up.
exactly. it is the function of the market to act as a leading indicator. of course there are always warning signs but a bell is not run at the tipping point for everyone to hear.
A recession is overdue. Historically the average time between the start of one recession and the start of the next was 6 years. The last one started December 2007. 11 years ago. 1929 1937 8 1945 8 1948 3 1953 5 1957 4 1960 3 1969 9 1973 4 1980 7 1981 1 1990 9 2001 11 2007 6
Just sell (not buy) every pb..every BO....until things change..caught on the wrong side? ...exit..double up and go the other way...only has to travel 1/2 distance..then profit...not advice...just a few thoughts..............
I have never bought into this idea. The world for a couple/few decades now, operates on a just-in-time basis. The Masters think they are in control of everything, until PROVEN wrong. Some of them even do gods work! Where was this "leading indicator" in 07/08? Where was this "leading indicator in 00? 1987? etc etc. Warning signs are the leading indicators, not the market itself nor it's self-proclaimed masters.
What your hearing is the sucking sound of money leaving the market. The Fed pulled the plug, they are probably the only ones who can put it back .