Yes, but maybe The Street dot com voters think (as I do), that the $SPX could go to 1500 or 1600 or higher, but it doesn't really matter if in that scenario a loaf of bread costs $20 and a litre of milk costs $10.
I guessed (I mean voted) Bearish but I'm usually wrong. LOL Anyway, it's interesting that Airline stock like jblu and luv look higher and oil is going higher too. $ is due for bounce!
http://www.dailyreckoning.com.au/zimbabwe-stock-market-booms/2007/06/04/ Zimbabwe Stock Market Booms As Robert Mugabe Prints More Money By Bill Bonner ⢠June 4th, 2007 ⢠Related Articles ⢠Filed Under About the Author Bill BonnerBest-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning. See All Articles by This Author * None Found Filed Under: Africa Money isn't everything. We provide additional proof this morning by looking at a place with a lot of money - Zimbabwe. Nowhere on the entire planet is money piling up at a more rapid pace. The printing presses in that hellhole must be working around the clock. Consumer price inflation is increasing at an annual rate of 1,729%! "My bad," says Robert Mugabe, the nation's democratically elected tyrant. We look to Zimbabwe not merely for entertainment but for instruction. It shows us that not only is money not a good gauge of wealth and happiness, neither are asset prices. Rich Americans look at rising stock prices. 'All is well,' they say. 'We're getting wealthier.' Poor and middle class Americans look at their house prices. 'All is well,' they say. 'Our houses are worth twice as much as they were 5 years ago; we're getting wealthier.' Alas, it is not so. As money comes off the presses in Zimbabwe, it has to go somewhere. More of it goes to the rich than to the poor. So, ASSET PRICES RISE MORE THAN CONSUMER PRICES. Guess which stock market has gone up the most in 2007? The Zimbabwe stock market! It's up 600% so far this year...up 12,000% over the last 12 months. Imagine that you live in Zimbabwe. You are one of Robert Mugabe's cronies and you get your hands on US$50,000. Of course, the first thing you want to do is to shuffle it out of the country. But short of that, what do you do? Do you invest in real capital improvements...new industries...new equipment...new property? No chance. Not in an economy that is rapidly collapsing. People don't have enough to eat. They can't buy fuel. Public services are crumbling. Transport, education, health, trash collection, police - they are all disintegrating. It used to be the richest part of Africa. Now, thousands of refugees sneak out of Zimbabwe every week. The place is a disaster. Instead of investing in fixed capital improvements, you put your money into stocks - hoping that the stocks will go up faster than your currency goes down. The result? A speculative, asset-price boom - even while the whole country is falling apart. Meanwhile, America has its own asset-price boom...its own crony capitalists...its own printing presses... But even as asset prices go up, the real economy slows down. Today's news tells us that the GDP is barely growing at all. And the Fed says housing will be a drag for longer than expected. Bill Bonner The Daily Reckoning Australia
I started the "The retreat-.." thread on Friday with the market at the top, and people were not interested in it. Is it a sign that ET is finally bullish? (at the top?) The only thing missing from extreme bullishness is that I did not get insulted in that thread. Usually at extremes, a person gets insulted to say the opposite. An example was the thread on the bonds' top in August. There is a guy who is still insulting to this day, and there was a "professor" who teaches others how to trade and he was bragging that he is long bonds (on the exact day of the top, and even after it) but he disappeared a couple of weeks after he realized that the retreat was serious. You need something like this for a major top. Back in April, there was another ET guy who came along (he writes in newspapers, etc) and he was explaining and bragging how the market was undervalued, and explain that it is was stupid to think even of a little retreat. Two weeks later, there was the flash crash, and his comments were made on the EXACT day of the top. Similar things happened at the day of the bottom, etc. We need people bragging in high numbers, or bragging and have a large number of follows.
wait till Ireland and Protugal ask for several hundred billions, and we'll be in the same shoe just like late Apr. 2010 http://www.bloomberg.com/news/2010-...t-as-investors-dump-bonds-eu-s-rehn-says.html http://www.dail*****.co.uk/news/worldnews/article-1327834/Irish-economy-Greek-style-bailout.html
i find today's XLE relative strength puzzling. with the market down and the dollar Up i would have expected XLE to be really hammered today.
they reverse-split VXX! must be the market top! FAS was split on May 05 2010 - right before the crash.
I have my explanation, but you can reconstitute it from what I posted since the day before fed day. I do not want to explicitly write my thinking on this forum, for fear that the comments would cloud and deflect my attention to and conviction in the analysis. Reading and discussing things in this forum can lead to losses, and/or missed opportunities. If you want possible hints to the analysis: think worldwide rotations, and also what funds/big money thought before and after the fed meeting. There are also confused big in the loose who get chopped when their heads stick out and meet flying swords.
I'm doing my part to keep the price down. I shorted the damn contract 11 times today and less than hour after my final trade it had bounced right back. Those greedy f*ckers are simply unstoppable!