Do you expect another sell-off after earnings?
- Thread starter RGLD
- Start date
We should not forget that huge deficits raise corporate earnings, and huge deficits on top of a full employment economy, which so far as I know has never been done to the extent it was by the Trump Admin, will really goose corporate earnings. Put that on top of a falling dollar (mainly due to to anticipated inflation I believe. I don't think that much inflation will pan out, however, due to covid and the feds ability to withdraw money from the economy when the time comes to do it. So put it together, weakening dollar and tremendously goosed earnings and you have a gourmet recipe for sending stock market into orbit. I hope the chute opens on the way down.
By the way that deficit bumping up Corp. earnings thing this is due to Levy -- a business man that endowed the Levy Economics institute at Bard College. Think there's a Levy equation named after him. In any case it makes perfect sense because gov'mt was spending oodles for goods and services into a full steam economy! I mean just a few of those golf trips alone! Ooops, I forgot Mar a lago doesn't declare, "expenses" wipe out all the profits.
Oh well, if it doesn't, I'll volunteer to sweep up the debris.I do expect further Nasdaq correction in the near future, at which point S2007S will flood the board that "nobody" saw it coming and we are going to 900 on the SPX. Some things tend to repeat. I'd love to see the SPX take out 3390 just to totally negate Schizo's forecast that we will never see that level in our lifetime, but we may not get there ( yet ). I do however think the Nasdaq taking out ATHs easily within months basically already destroyed his thesis pretty dramatically the SPX high is more of a technicality at this point.
The government will continue to prop up the economy but they can only maintain the illusion for so long.
The thought was that the virus would subside in the Summer. So hit the economy hard. Delay all kinds of debt payment/rent/...Shovel in a lot of money and wait for the virus to subside in the Summer and let the economy open up and do its thing.
Instead of better the virus is getting worse.
Defaults, bankruptcies, foreclosures are going to swamp the economy.
It is hard to image a bull running much longer.
The thought was that the virus would subside in the Summer. So hit the economy hard. Delay all kinds of debt payment/rent/...Shovel in a lot of money and wait for the virus to subside in the Summer and let the economy open up and do its thing.
Instead of better the virus is getting worse.
Defaults, bankruptcies, foreclosures are going to swamp the economy.
It is hard to image a bull running much longer.
What illusion? Since you've concluded that the government can only prop up the economy for "so long," what do you think the limiting factor will be that determines how long the government can do it.?
Recent economic activity for the most part has been a function of the massive March stimulus package.
Along with this was all kinds of deferred programs for mortgages, loans, ...
Defaults, bankruptcies, foreclosures are going to swamp the economy when this can kicking is over.
The market and the rest of us still have not factored in the devastation being caused by a virus that is not going away.
The thought was that the virus would subside in the Summer and the stimulus package would keep it going until things got better.
Not getting better.
As an aside - gold and silver have staged impressive rallies suggesting some segment of the market is preparing for tougher times.
If you think everything is great and everything is already priced into the market, I actually hope you are right.
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fine, but can you answer my questions: What illusion? Since you've concluded that the government can only prop up the economy for "so long," what do you think the limiting factor will be that determines how long the government can do it.?
Really, Corky? So how far down you think we are going in the next 3 months? 30% from here? 60%?
We went down 35% or so in March, and recovered quite a bit. I do not recall seeing you chime in at that time. So now you have an opinion?
Do you actually trade or just spew bullshit out of your ass?
Hey, Corky. Where is COMEX GC going tomorrow? And you cannot cheat and say that you think it will range between 1900 and 2000 tomorrow. Give a target and your reasoning for it.
It will be exciting to see how your predicting jives with the Fed decision and Powell's dribble tomorrow.
When market opens,
simply glue your butt to your trading chair, and eyes to the monitor screens for many many hours.
Simply focus on the charts.
when price is going higher, simply long the stock.
when price is going lower, simply short the stock.
Simply leave the prediction to
the fortune teller / tea leaves reader,
professional writer / talker,
newbie traders.
simply glue your butt to your trading chair, and eyes to the monitor screens for many many hours.
Simply focus on the charts.
when price is going higher, simply long the stock.
when price is going lower, simply short the stock.
Simply leave the prediction to
the fortune teller / tea leaves reader,
professional writer / talker,
newbie traders.