Discussion in 'Trading' started by noob_trad3r, Feb 5, 2009.
With all the bad news today and the bad news coming on friday why did the stock market go up?
Bounced off Nov lows. Very bullish sign that chart traders swear by. So every body joins in the stampede. Also, Congress says they are on the brink of stimulus compromise. Also bullish as WS and banking has been holding its breath. Now we need newspaper headlines proclaiming passage to continue on up. A short rally is definately in the works. WS is busted because banking and housing are all screwed up. Once repair plans are implemented and show signs of working, then the market will start heading back up in anticipation of a recovery.
Wrong, we never got to the lows.
Obviously it was close enough.
In the middle/end of a bear market. Bad news mixed with any good news causes the market to rally. Bad news alone can trigger a rally. Cisco revenue and cash along with Bad bank talks and rumors of enough stimulus politician support, etc... easily softened the bad.
The news has to be horrible, horrible at this point to trigger huge dips. Or no news can trigger it after a bear rally. Bad mixed with a little good can easily trigger a rally.
Also, their is such a thing as preparing the markets for Friday. So if horrible, market makers are better positions for Friday's ride. They don't yet know the direction, just preparing.
Ride the ride, try not to go the opposite way, and above all... don't try to figure it out because when you "feel" something the market knows it and does something else.
Hit a major support, draw your lines and you will see.
Citigroup went up 4 pennies because dust & feathers fly up easily;
we call that % move '' noise '' ,but word to wise,its late in the cycle.
QQQQ hit its 50 dma in DEC; closed above it in JAN-trend changed Thats telling you something,feel free to ignore it, its still a free contry
Best answer so far. This man's a professional.
I've been mostly a seller in this market & I clearly should've given a shot today near 817 support, ES-H9.
I remain skeptical that congress or any body can LEGISLATE THE BUSINESS CYCLE, which is clearly what they intend.
One year from today your home will sell for 10-20% less (not counting you fellas who just bought a foreclosure!).
Think about it.
You really think global economies are out of the woods yet?
Sell rallies. If you're brave, buy a couple supports till we get closer to 1,000.
At 1,000 or so sellers may get aggressive.
I see three things coming up:
#1: Bankruptcy of a major auto maker; likely GM.
#2: Nationalization of both Citi & BofA - as credit losses spread into commercial, consumer credit & other areas, banks shall likely be hardest hit.
#3: Joblessness rising from 7.5% to 9%.
Naturally, charts reign supreme.
They even reign supreme without words or commentary.
ES is up today because support held (at 817 area not enough orders to sell to overcome the moderate amount of buy orders.
I'm worried about our country, gentlemen. We have politicians trying to steer an economy they know nothing about.
Does this help answer why stocks were up? I hope so.
Best wishes trading
what a roller coaster ride today. BAC killed me. I was loading up in and out in and out. Couldn't catch it right. One of those days.
A jobless report of no more then 500,000 will be bullish. I think the concenus is 570k.
Traders are betting the report will be under 500k. Its an upside down world.
Separate names with a comma.