Are we going to face a strong correction?
- Thread starter viktor_k67
- Start date
As the brilliant Mart Zweig ( http://en.wikipedia.org/wiki/Martin_Zweig ) was fond of saying -- often and with conviction -- "Don't fight the Fed." Investors and traders are much more prone to hold and even increase their speculative positions when money is cheap as opposed to dear. Fixed income returns are low in times of cheap money and that tends to encourage the buying of equities.
You may disagree with what I have just stated but be aware that the overwhelming majority of successful investors and traders subscribe to that point of view.
You may disagree with what I have just stated but be aware that the overwhelming majority of successful investors and traders subscribe to that point of view.
And cheap money means what for the stock market? DID YOU KNOW that when one person buys shares and puts his money into the market someone else sells to him and takes his money out? Regardless of whether the money was cheap or expensive in the first place
It is difficult to scare people right now and everyone is buying every dip. Compare this to the situation in 2009 when everyone was easily scared, the dips were prolonged and assumed by most people to be the start of the "next leg down.."
The Fed is neither here nor there. I would say: don't fight the market!
The Fed was cutting aggressively from 2001 but the market still kept falling.The Fed is neither here nor there. I would say: don't fight the market!
time lags.
"Are we going to face a strong correction?"
Yes
+1.
No matter what the Fed does the market has never been, and never will be, a perpetual motion machine.
I think now we are officially are. Especially when CNN money and Yahoo finance are telling to the crowd do not to panic. Just check these titles:
"Don't get caught in the crowd as fear builds" - at
http://finance.yahoo.com/news/macke--don-t-get-caught-in-the-crowd-as-fear-builds-121813063.html
and "Earth to investors: Don't panic!" at
http://money.cnn.com/2014/08/01/investing/stocks-markets/index.html?iid=HP_LN
Just updating the chart I posted when I opened this thread (see first post in this thread):
chart courtesy of marketvolume.com
I posted my personal opinion yesterday at the "Correction Down..." post
"Don't get caught in the crowd as fear builds" - at
http://finance.yahoo.com/news/macke--don-t-get-caught-in-the-crowd-as-fear-builds-121813063.html
and "Earth to investors: Don't panic!" at
http://money.cnn.com/2014/08/01/investing/stocks-markets/index.html?iid=HP_LN
Just updating the chart I posted when I opened this thread (see first post in this thread):
chart courtesy of marketvolume.com
I posted my personal opinion yesterday at the "Correction Down..." post
ATM machine!
I knew this was coming....on the DOW at least. I understand that some here aren't fans of T/A but the price action confirmed it for me on the 25th. Of course it all sounds like hindsight now, but here's where I made the call on the 16th via Facebook. I was wrong on the long-term direction of treasuries although the treasury market did rally strongly the following day.
Depends on time frame;
+ other things
Citigroup is actually a penny stock, because they reverse stock slip 10 times, above average sell volume....................................................................................................................................
+ other things
Citigroup is actually a penny stock, because they reverse stock slip 10 times, above average sell volume....................................................................................................................................