Very Bullish reversal is just happening

Discussion in 'Trading' started by hajimow, Aug 9, 2011.


  1. dunno... not listening to the FED anymore... hahaha

    I am CRAZY!!!!!!!!
     
    #61     Aug 9, 2011
  2. SP500/DOW daily and weekly charts are bearish so the rally that
    started late Tuesday is counter trend and thus temporary.
     
    #62     Aug 9, 2011
  3. QE1 & 2 averted a banking disaster. There will be no QE3 because there are no libor issues, no credit default, no PPI deflation, system is well liquified. Fed could care less about the s&p now unless it falls 80%

     
    #63     Aug 9, 2011
  4. This. Not saying the carnage will continue tomorrow, but that ridiculous surge after that ridiculously tame announcement (why would anyone think think they were going to start jacking up rates, even in the medium term?) isn't a indicator of anything except that some very rich people are executing some very clever (or possibly very stupid) SHORT TERM scheme. Everything before 3pm was perfectly reasonable, expected correction and counter-correction.

    This isn't 2008. There's no super scandal, no circling-the-drain companies (BoA doesn't count) driving this one. The issues are fundamental and very real, but this urgency is (very much like the tea party's recent obsessions) contrived. The negative correlation of gold with other commodities is all you really need to see to realize the whole thing is hopelessly distorted. I think the underlying real trend is bearish, but no one can see through this noise.

    This is the greatest psychological market manipulation ever attempted.
     
    #64     Aug 10, 2011
  5. There could be several reasons why the announcement was bullish for stocks, to name just a few:

    1. Declining yields on the 10-year treasury after the fed announced they would keep interest rates next to zero until mid-2013, and no indication of more "QE" nonsense (thus far).

    2. The fed announcement was met by the usual violent whipsaw action until the S&P found support around 1,100 (the November 2010 low). Longs started buying in droves, and/or shorts covered.

    Whether or not the "very bullish reversal" is the true bottom is anyone's guess.
     
    #65     Aug 10, 2011
  6. There aren't many places to invest people.

    There's gold, stocks and commodities.

    Everything else sucks these days.

    What used to be the Holy Grail, Real Estate, it's now the kiss of death.

    FoN
     
    #66     Aug 10, 2011
  7. Equity selling strength returns, threatening counter trend rally.
    Futs last 11029.
     
    #67     Aug 10, 2011
  8. will848

    will848

    quotesd for LOL
     
    #68     Aug 10, 2011
  9. Tsing Tao

    Tsing Tao

    This is your answer as to why the Fed announcement could be bullish?

    Number 1 above is opposite reality. More QE would have been bullish for stocks, not less. Number 2 is a technical reason, not because of the Fed.

    The reason why, other than a technical bounce (remember we had like 8 days of down, have to bounce somewhere) is that, by guaranteeing low rates for so long, the Fed is trying to push everyone out of cash and into something that offers return. Equities, etc. Holding cash gets you zip (even less so when taken with inflation).
     
    #69     Aug 10, 2011
  10. another buying opportunity - not

    a fed induced , cnbc lead load of bull shit.

    bank of america is finished.

    get short my friends
     
    #70     Aug 10, 2011