because economic problems are huge. country already might be in recession stock market is supported by multinational companies and depreciating dollar although sooner or later FED will be forced to hike rates to double digits in the middle of recession
From 4/25/07 WSJ : Bearish Bets Hit a Record on Nasdaq : "Short-selling activity rose to a record on the Nasdaq Stock Market despite the stock market's recent rally."
Because corporations are multi-national, and lots of their profits come from overseas. At least that is true of many if not most of the SP500 stocks. The dollar weakening actually helps profits in this scenario. When a global recession hits, the shit will hit the fan. Until then, buy buy buy. First target ES (as measured by the M7 contract): 1510. Then 1550 (1528 to 1550), where there is massive resistance. If it goes through that, I have no idea where it stops. nitro
I don't agree that this is asset inflation. It is true that US assets look cheaper to foreign eyes, but foreign investors buy US assets to see them appreciate faster than the currency devaluates. Every foreign investor knows the federal reserve couldn't care less about the dollar, so while US assets look cheaper and cheaper, they have no reason to buy them because once they do, they know the dollar will continue to lose more value than the market gains.
Its the futures, its a perfect tool to get the indexes up, just look inside the Dow how many stocks do you see at new highs 1, take a look at GE a bell weather for the US economy, so they say, dont here to much of that talk any more. Yes folks since the index futures came along its been pretty darn easy to gap these cash indexes higher. Just think of how much capital it would require if everyday the cash indexes had to start were they left off. Thats what pre market and the futures are designed to do lift with out much effort. Market specialist get a free mark up every time the futures are up at the open, they get to raise their prices, just because the futures are up. INDEX FUTURES ARE THE PERFECT TOOL FOR MARKET MANIPULATION.
I am a bull on retracements, I am not holding any position at the moment, I am not buying up here right now, I am afraid of heights.
I think he was being sarcastic... The fed may rise rates another quarter point and the market will probably selloff 1% on that but markets will rebound soon afterwards given that it will probably be the last rate hike in along time The fed has been hinting at possibly one more hike and no more reductions.