i just wonder why they bother, who they're putting on the show for. joe sixpack doesn't care and the institutions all know exactly what's going on
To squeeze retail out of their good positions (the dwindling few ones) and to lure them into the shitty ones (let's all get defensive, sheeple, and buy brewery stocks at their 5 year highs).
Good job longs, we defeated yet another numbers menace. And the inflation scare menace. nasdaq closed slightly down, dow S&P up
I don't think you have a lot to worry about. The fact that the market continues to hold up under a ton of negative news is bullish. I've been bearish for the last week or so but the market's showing plenty of resilience. I'm not one of the "freemasons are manipulating the markets" weirdos, but it's interesting how the equity markets have changed just over the last several years. The liquidity tail wagging the US equity dog is being fueled by private equity and the hyper-wealthy. The small investor has been absorbed by 401k's and mutual funds and has no real impact on the market aside from their liquidity contribution every month. Add to that near instantaneous moves in indexes due to algorithm powered computer trading and the markets are more tightly controlled by institutions and the mega-wealthy than ever before. We're less than 3% off the recent highs in spite of negative economic stats, lower earnings, higher oil going into hurricane and driving season, Iran, China. Ordinarily, a market holding up under crap news is a bull market. In addition, there's huge money looking to privatize public companies and those aren't the types of clients the big securities traders like to disappoint with a selloff.
the stock mkt has basically become one conslidated certificate of deposit... for better or worse personally i say worse, but if the other option is a recession that causes major segments of the leveraged economy to realize some level of potentially contagious insolvency, it's easy to see why the creators and users of liquidity need/prefer it to remain this way. can you still call it a 'free' market though when the price is mostly liquidity driven vs representing the competetiveness and value of the actual businesses? i just fail to recognize a point or situation in which the fed/institutions will reverse the liquidity pump as our society is increasingly dependent on it to maintain the status quo. how is it not a one way street to hyperinflation
If interest rates rise, the stock market will get crushed. If interest rates remain at current levels, it's a stock picker's market. If interest rates get cut, the bull is on.
That is pretty naive - have you got that from Samuelson or some kind of static IS-LM thinking? Why did equity market go up in the past 3 years with short rates creeping higher every 6 weeks? It is much more likely that if Rates go up then Stocks go up because economy must be fine when rates go higher. Even if economy is not rosy and rates go up because of inflation you still may do very well in commodity stocks - where else people can put their money.... (bonds/cash get slaughtered first) bottom line is: if the market wanted to go lower why it did not go down already? given that a lot of people partly deleveraged their portfolios I am pretty bullish again. good luck
that is true. there are alot more #'s released during the day vs. 5 years ago even. ie help wanted index, pending home sales, doe's, etc. causes the chop that the arb boxes so dearly need to save their as*es.
The only numbers you should be concentrating on is the ones right before you, i.e. bond market, commodity market, futures, etc.. Whatever news that comes out you will not be able to interpret fast enough. All you need to know is the numbers right before you. I dont really care what the news is. They are just "volatility events" that will put the numbers one way or the other. Concentrate on the numbers and not the news.