What make the markets recover??

Its going down and down and down.. Still Up from the year begining..

What makes the market to recover.. Subprime losses are still a worry.. When and what makes the recovery from this issue..

Nearly all financial sector had hits.. the same way.. tech sector got heavy hits.. But is the growth from year beginning from 11+ to 14+ is a true one for Dow..?

Any comments..

 

Well markets go down.. they correct a bit.. then they go up again. POssibly beginning next monday we will have the start of recovery. I agree with Doug Kass that we will have the year end rally

 

markets recover when the sellers are exhausted

 

positive inflation and retail sales data next week & no more writedowns.

 

When Cramer lost it again on live TV.

 

When the brokerages have accumulated enough inventory.

Otherwise, what are they gonna sell to YOU?

 

It's the action of the plunge protection team.

 

Big market moving story in the New York Times this morning. Looks like Paulson jammed the superfund through.

The next thing that would help is some kind of positive news about the bond insurer solvency issue.

 

I find it sometimes clearer to think in terms of commodities.

In the corn business when price values are near say 5 year high prices then corn production might be profitable. Farmers might plant more corn. People might quit their jobs to become corn farmers because there is so much money to be made growing corn. This increases the production of corn, also called the supply of corn. The increasing corn supply might cause price values to decrease. Corn production might not be profitable when corn prices are near say 5 year low prices. Farmers might stop planting corn. Corn farmers might quit the farming business because they are losing money. Corn demand still exists but the corn supply is reduced so corn prices might increase again. A dry spell, railroad worker's strike or some increase in industrial demand for corn might cause price values to increase again. The cycle of price values continues changing, just as price values always changed throughout history.

The oldest documented trade that I know of is the biblical story of Joseph and Pharaoh cornering the wheat market of ancient Egypt as recorded in the Bible, Book Of Genesis.

Now you know what to look for. When prices are high lots of people enter the business. When prices are low businesses close, factories close.

How does the real estate market look to you now? What is the phase of the real estate cycle now?

 

Cramer only wanted the cut so he could get out without a loss, now he could care less