Pay$ense take - Market tanked about 50% and took with it financials, homebuilders and related stocks. That means EVERYTHING went WAY, WAY down. Then. . .like the genius in you or me could dream up (when we surprisingly lose our job and have family, home and debt to keep up) our elected officials took our consent and "borrowed" (printed) $3T - with the best of intentions to pay this back somehow, later. . .when we come up with a plan (we still don't have, like SS). FYI - I'd like to be able to do that. Mortgage my future generations by borrowing against their very life (or livelihood - sort of like from a shark or the mob) to keep thinks hunky-dory now with no intentions of repaying (well I'd not really want this). Yes, we got by and kept our standard (companies still in business, people working keeping tax $$$ flowing) - despite a much shorter-lived recession. But the banking industry should have paid the price and consolidated and had more honest ones take over (the government could have backed a plan like this, but they are in bed with Wall Street - rigging the biggest *crook* Ponzi scheme since SS. <b>Now what happened?</b> We had capitulation with the Vix spiking to unheard of territory - near 90 (no investor really knew what was going to happen or if the system would remain solvent) and enough money was automatically removed (stopped) from the market raising volume. . . But then high volume came back into beaten down banks and stocks along with technology - once it was realized we would survive to bring things back up to the level above the last quick dive. Then we just kept rallying. Was it smart money? I do not know, there wasn't much volume, which in fact went on a decline. But with a couple short-lived attempts at a correction -- money kept slowly and gradually coming off the sidelines to keep the nascent rally going. A few month into it and still no correction or summer sell off or volume??? It seems institutions just bought back shares they had dump around the dip period and retailers kept buying select beaten down tech, etc. wading into a rather monstrous return off the lows (we are still pretty far off the highs). Well with everything seemingly OK (Vix still shows the huge debt burden or overall, inherent risk we hadn't before) now new leadership is finally emerging lending even more credence to the rally (support for an even healthier market). Will we ever correct or have a rotation in and out of stocks to fine-tune new leadership or the new momo stocks? Sure at some point once institutions deem it is time to dump in higher trade!!! But until then just trade the rallies! Will the lows be revisited? Perhaps if the market deems this climate of no real value. But who cares - we have a system still in place. . .just trade it! When has anyone seen a news presentation that said shut up with all the cerbral financial programs that are going to or did save the day - and DEMAND THAT WE GET AN ANSWER ON HOW THE HUGE AMOUNT OF BORROWED MONEY THAT IS NOW A BURDEN OF DEBT IS SUPPOSED TO BE REPAID. After all you and I could have dreamed up a similar way to save a dire financial system. gads!
Volume confirms this rally. You missed the boat sitting on your hands and holding on to cash which is a depreciating asset.
I think we could be coming to the very bizarre situation in which the economy is terrible but stock prices are high. Stocks could stay elevated due to inflation fears, along with buyers willing to pay a premium for stocks anticipating a recovery. How long this can continue is anybody's guess. I think it could be a while however. Obviously it is not a good idea to short this market. If the economy doesn't show meaningful improvement by year end this market will get shoved back down. I think there is going to be a "W" shaped recovery, AKA at least 1 double dip.
In March, Obama said to buy stocks, what President does that? Somewhere along the way, Obama must have been fed a line of bs that the market is the economy. There's an adage, if a stock refuses to fall on bad news it's worth a second look. Well it looks like ditto for the entire market.
If you look at a lot of stocks they broke out of the bearmarket from 2007 until know. I feel we are in a bull market know. I own YRCW and have a post on the link below. Feel free to post your advice. Economy is picking up and YRCW will pick up with it in my opinion. http://www.freetradingvideos.com/forum/forum_posts.asp?TID=2676