Dow 450 points of lows and surging ..August 16th 2007 again

[stock_trad3r]

This is a repeat of August 16th 2007 when the dow lost 500 points and the regained everything. It fell to 12500, closed at 13,000 and surged to 14,000 shortly after.

Consumer spending is key.

No slowdown. No negative GDP.

The restaurants and colleges are packed with people. NO slowdown in traffic. NO signs of economic weakness unless you happen to work in the mortgage or finance industry.Credit card spending is showing no signs of slowing. Rising wages=more debt=economic growth.

I warned ya'll the rebound was coming.

This is why you don't short when there is no compelling reason to do so.

Some people made money on the downside, but vast majority of people here cover on the smallest uptick. Few here hold short positions long term.

Dow 14,000 next year seems very reasonable.

 

[Lucrum]

Is there an echo in here?

 

[stock_trad3r]

The current bear market is like 1987 again. or the 1998 bear market. A ton of selling for no good reason.

I've been bullish when the dow was at 14,000 last year and I haven't changed my stance on anything in spite the markets being 30% lower because the fundamentals haven't changed.

Those who bought RIMM at 140 this year should not be concerned. They will earn excess returns despite buying at the top given enough time. Same for those who bought AAPL at 200.

 

[paysense]

Yes, I distinctly herd an echo.gA

 

[Ivanovich]

Cause he knows how stockz w3rk.

 

[stock_trad3r]

Fundamentals are key. Unless those change you will make the most money on average just going long. Those who bought GOOG at 550 will make more money in the next two years than most people who went short in in the past few weeks.

 

[Brandonf]

Quote from stock_trad3r:

Fundamentals are key. Unless those change you will make the most money on average just going long. Those who bought GOOG at 550 will make more money in the next two years than most people who went short in in the past few weeks.

Did you not just lose a shitload of money by being an emotional buying fool? Did you not learn anything from it? I think we are much closer to a bottom vs the top, in fact im long the QQQQ from 33.65 on my account, but I'm keeping things small and hardly shouting from the roof tops.

 

[jackangel]

if you call for a rally everyday, sooner or later, you'll be right.

that saying about the broken clock is overdone, must come up with a new variation.

 

[frank grimes]

The fundamentals haven't changed? Yikes, please explain how the fundamentals have not changed. This should be interesting.

 

[JCVR]

If I was long AAPL at 200 or RIMM at 140 I would most definitely be worried. They took the stairs up and the elevator down, it's going to be a long walk back, in this market I doubt they see it again....maybe in the next bull market.

Spending on blackberries, ipods, iphones, etc is going to slow down. The final leg of this down cycle is going to be the market reaction when all the turmoil finally catches up with the non financials in the form of lower sales, lower earnings.