Wow this market moves up so easily

Discussion in 'Trading' started by bonds, Jun 19, 2012.

  1. bonds


    I was watching CNBC on the day before the weekend of the Spanish bailout talks and they were saying dont expect much movement in the market today as investors will wait and see what happens... and yet the market finished up triple digits that day and kept gapping up after hours.

    Same thing last Friday going into the Greek elections, not supposed to expect any market movement going into the elections, yet the market finished up triple digits and kept gapping up after hours.

    Then both times they were saying that oh shorts wanted to cover going into these events. Yesterday they said market will be flat ahead of the fed meeting as investors witll want to wait and see what the fed chairman says. And again we are now up triple digits going ahead of this.

    Is there more to this than just shorts wanting to cover? I mean if you were long going into any of these events wouldnt you want to be flat as well especially considering how much the market has run up recently. Is there more to it than this and maybe they are just trying to come up with a reason as to why the market is moving up so much preceding these events?
  2. your problem is listening to cnbc. what the hell do they know?
  3. piezoe


    Assuming the longer term picture includes a somewhat lower Euro/USD (It should in my opinion) than one might expect a lower US market, but this view must be tempered by the possibility of further accomodative Fed action and the reality that this is an election year. The summer is usually mostly sideways to down a little. I suppose this being an election Year we can expect a late summer market rally going into the Fall, a break perhaps from the more typical. Longer term traders are best served by ignoring the day to day gyrations driven in the main by responsive buying and selling of short term traders, with the occasional trend day, such as today, thrown in. For longer term traders, a long position in the US markets should be more productive than a short position if November is on your horizon. Both the US elections and possible Fed action is supportive of that position, however a weaker Euro is not. If frogs sprout wings run for cover.

    The technical view is this. We are pushing up toward the 20 week sma in the ES. We last pushed down through the 20-week and closed below it on May 14. This ushered in 4 more weeks of a down market. A close above 1355-6, the current 20-week sma. Would be a significant harbinger of further gains to come. It would be particularly significant if the weekly bar closes above this level.

    note: I just edited this. I hope I have it right this time.
  4. Tsing Tao

    Tsing Tao

    It's all about Banana Ben and doing what he does best - printing.
  5. 50/50


    You can thank "Banana Ben" keeping the USA from deep sixing.
  6. bonds


    Its weird how these low volume 100+ point float up moves are becoming the norm seems like we never see a triple digit low volume float down how come? Because shorts have to cover lol?!?
  7. Tsing Tao

    Tsing Tao

    Really? The USA is "deep sixing" by just about every measure available, except the stock market. Banana Ben isn't doing shit for the average American. He's providing the banks a windfall to rebuild their balance sheets. And not just American banks, either.

    You think he's helping unemployment? LOL! How about housing? Haha! More people than ever on food stamps, household worth at 1990s levels. Food inflation, loss of purchasing power....oh yeah, Benny is a life saver!

    Three cheers for Benny!
  8. =======
    T Trader /Bonds;
    What the high does CNBC know??:D Another problem is not so much listening to CNBC; but actually believing CNBC.
    I say mainly 200 reason its going up;
    2oo day moving average is up,
    200 candles or i year chart is up.Now it looks like50 dma is bearish

    Last AUG looks like short covering, they tend to be more violent /short in time buying thsan the longs buying lately.LOL

    Of course when Jim Rogers is bullish on gold on CNBC;
    Bearish on big banks on CNBC. Thos trends mayextend, my friend. Thats wisdom.:cool:
  9. Doesn't everybody already know that the Fed's primary function is to protect banks and bail out their greedy, overly aggressive leveraged plays when they go wrong?
  10. Tsing Tao

    Tsing Tao

    Apparently not.
    #10     Jun 19, 2012