Did I miss something?
Did they announce QE3?
Is there peace in MENA?
Has Greece been sorted out?
Is the debt ceiling deal done?
It can not go down!!! Dow 15000 by the end of the year.
but what can you do? Still holding on to my puts thought, I am a believer (even if it costs me fiat)
INFLATION Trade is coming back.
Probably a Algo headfake built into the trading programs to lure money back into the market and then "Wham!" another commodities margin hike or a crude oil bailout or whatever they need to do to yank the market back the other way.
Something fairly dramatic is going to happen in the market right around July 1st or after the holiday on the 5th. Something always seems to happen on the last day or 1st or 2nd market day of every month. With QE2 being announced as finished (in 2 days) and the markets already fluctuating beforehand, the aforementioned trading days should be interesting.
An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246
The market is assuming the Greek vote will pass.
Oversold in the short term.
So The Squid can extract a little extra on the $100M/day they pull out of the POS.
POSX took a dive today.
Why not? Great day to unload some stocks.
End of quarter markup in process.
Insider buying to selling is about 40 to 1, yet the ratio of corporate stock buybacks to insider purchases: 16,800 to 1
Yes, execair? I want the 'Gulfstream' fully fueled and on immediate standby mode. Note to office; Won't be in on Monday - going fishing.
short covering/ squeeze a la august 2008?
oil is higher so cost of just about everything is up, margins get squeezed, consumers pay more for gas
interest rates are up, so that hurts the housing market plus anyone in debt
Greece is now going to default in 3 months instead of next week
the US will escape defaulting on treasuries, previously known as the safest investment known to man, by at least a day or two
the commercial paper/BA/money market is about to freeze up completely
What's not to like?
Lets just think about what would have happened if the share markets would not have recovered after the 2009 crash. Negative inflation adjusted interest rates, unemployment at uncomfortable levels, real estate values drifting downhill, people's savings and nest eggs shrinking fast. Absolute despair, consumer confidence and spending gravitating towards zero, economic meltdown.
Something needed to be done, and how better conveying the illusion that not all is lost than to prop up the stock markets. Best achieved by supplying via QE liquidity to primary banks which then via pre-programmed low volume algo trading slowly but steadily pull the indices higher.
That this is not a US specific phenomenon. The institutions tinkering with the markets are truly multi-national, clearly shown by the snug overlay of the Dow v the German Dax.
Whatever forces are dragging the prices higher, its a concerted effort on both sides of the Atlantic.
Another point we shouldn't forget is that there is stacks of money out there looking for a more or less decent rate of return for relatively low risk, and both the US dollar and the Euro are gradually loosing their status as save havens. So, where else to park one's money? With the Dow performing like a world champion, shooting from $7'000 to $12'000 in two years, not a bad ROI.
The global economy was in as bad a shape last year June as it is today, with just as many gloomy news and forecasts predicting a financial crash is imminent. If as a potential investor 12 months ago I had followed my gut feeling, and betted that after rising from $7k to $10k in one year despite the bad economic outlook the Dow is gonna roll over and correct, I would have missed its 20% rise in the past year.
But hey, standing at the crossroads today, I see a rubber band fully stretched, even more so than last year, ready to snap and inflict some serious pain. I could of course be wrong big time with my pessimism concerning equities, but going forward, and in the absence of any positive developments on the global scene that I can make out, the markets are poised to reflect sooner or later the harsh reality of corporate profit downgrades resulting from shrinking turnover on the domestic front. Especially when people have to sell shares in order to plug ever growing holes in the family budget.
But then again, with 20% of the population owning 80% of the market, the portion of the population reaching that state of desperato of having to sell assets to make ends meet every week won't own much stock.
To cut a long story short, share markets have become the arena for Fed afforded fantasy to wave its red cloth in front of the reality bull, outmaneuvering it time and time again to the cheers of the crowd. Until that one time, when luck has run out and the bull horns rip it a new one. It'll hurt.
There is no common sense anymore. In these markets 2 + 2 does not equal 4. If you try to trade with common sense you won't make it.
short covering/ squeeze a la august 2008?