Everyone is BUYING

baron says not to post here, but my thread got moved from economics to trading


:p :)

Quote from jplazard:

I don’t mean to be rude to the OP’s post but this is simply not true about massive buying and a set up by the big players to drive the market lower for a QE type rally supposedly coming sometime later this year. The majority of this massive buying you saw if you look at a Daily chart this last month on commodities/currencies/indices on Monday was people taking money off the table and covering part of their shorts as they made a great windfall starting on 5/4(sooner for the really gifted trader).

On just about every chart we were way oversold so it is logical to see a spike bounce like the one we saw yesterday and maybe a follow through today. But it still remains that the institutions were selling this market like you because technicals broke down simply put. They don’t have a motive to drive markets lower only to get in at a better price when QE comes because that didn’t work 2 months ago when people were positioning for QE that never came. You saw the reaction in gold/AUD/ copper/palladium ect that the QE bet was a dud and they had to cover.

As for QE coming In a month or two I would not expect anything from the Fed until you see UK showing a possible rate cut and introduction of QE as we would most likely come in behind them and Greece decision to get on board with Austerity or leave. The fed is not going to throw money into the system or make it to where fixed income/cash trasnfers are not attractive if we still have Greece hanging on because if we do introduce tomorrow and they decide to leave in June-August the operation would be a dud as well.

I like everyone might be nibbling at these levels for a possible yearend rally but no way will I hold until I get more clarity in June.
More...

Thanks for the post. I was watching the buying/selling trades on index and commodity futures last week through this week, and found that during the intraday-2day moves, lots of buying would happen relative to price. It seemed more out of style than it usually is - generally it's intraday only, but the past two weeks these swings have spanned a couple of days.

Perhaps there was likely allot of short covering behind it all, and maybe allot of people were getting wiped out too. It sounds like the people who haven't sold are the one's who successfully took Mr Market head on!

Apologies if I'm not speaking well either, English actually isn't my first language! :cool:
 
Quote from Trendytrader:

More FED stimulus to boost economy (markets& commodities) coming they know it already.
More...


Thats the only thing this market knows, is more stimulus, without the stimulus this economy and market is absolutely worthless.
 
Quote from S2007S:

Thats the only thing this market knows, is more stimulus, without the stimulus this economy and market is absolutely worthless.
More...

I don't know about that. By and large, companies have adapted, are growing and profitable. That is what the stock market is about. Companies, profits and growth.

Its the governments that cannot balance their books.
 
Traders know that we have to retest the lows one more time before we have a shot at a real rally. Either that or days of sideways consolidation.
 
Failed Trader,

you make a good point the numbers will not improve much and more than likely will be deteriorating and the fed might come in. I am not certain though for them to begin operations in a 1-2 month period from now as it would not be optimal if Greece does leave we will have a short liquidity shock lasting anywhere from 3-5 months causing new money coming into the system to essentially evaporate. Now I can see the fed coming in if a new round of QE is coordinated from Japan/UK/US and possibly an introduction of Euro bonds but for the Fed to come in by itself would not really help confidence much and you might see a month long rally but after that the market would be in consolidation.

I understand this would essentially be the best time to come in when markets are tanking but until EU leaders decide on a roadmap no amount of individual central bank stimulus would help much
 
Don't worry about the rally off the lows, the SPX is still headed for a drop below 1100. Of course there will be nice rallies along the way, but this market has a lot more downside left.
 
You must log in or register to reply here.
Back
Top