How on earth are the indicies markets all so extremely bullish??!
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George November 03, 2011, 14:38
The thieving Papandreou family is flabbergasted by ISDA's decision that CDS's would not be activated by the Franco-German Greek debt haircut decision.
In 2009 Niko Papandreou, PM's brother, bought for himself about 26 billion euros of notional CDSs from Greek postal bank, whose previous management was prudent enough to have such a position to protect the institution, for a paltry 30m euros. Questions regarding this remain unanswered in the greek parliament by MP Panos Kammenos; the exact same question was raised in the Europarliament by Austrian MP Andreas Mölzer.
This was supposed to be the Papandreou exit. But since their plans didn't go exactly as expected, Papandreou came up with a last plan about a reckless referendum idea that would send the markets plummeting. And it did.
George November 03, 2011, 14:38
The thieving Papandreou family is flabbergasted by ISDA's decision that CDS's would not be activated by the Franco-German Greek debt haircut decision.
In 2009 Niko Papandreou, PM's brother, bought for himself about 26 billion euros of notional CDSs from Greek postal bank, whose previous management was prudent enough to have such a position to protect the institution, for a paltry 30m euros. Questions regarding this remain unanswered in the greek parliament by MP Panos Kammenos; the exact same question was raised in the Europarliament by Austrian MP Andreas Mölzer.
This was supposed to be the Papandreou exit. But since their plans didn't go exactly as expected, Papandreou came up with a last plan about a reckless referendum idea that would send the markets plummeting. And it did.
May I ask/propose a serious Q?
How do you know that no one wanted to buy it. Obviously, if you think about it, many must have bought --- it's called "accumulation". Now as the market for whatever reason (4Q, Thanksgiving rally etc.) moves higher those who do not like to call/pick bottoms are jumping in so as not to miss what might or could be a train pulling out of station. Where then do you make your assumption that no one wanted to buy "it that cheaply". Many like to see some confirmation of an interim bottom before jumping in.
The biggest wake-up call for a trader is when they realize they don't have to catch a "bottom" to make a lot of dough. Buy high and sell higher in my view is the key and hallmark of a really good trader. This is what I try to learn and get better at every day.
That said, this market is totally schizo and tough to call. I keep leaving tons of $$ on table by exiting too soon in fear of these inane/absurd whipsaws we get. Hard market to figure out. No clear trend unless you believe we are in a bear downtrend and these moves are sharp rallies, within same.
It's a bull market, that's why. There are three distinct different time periods in all investments in my opinion: short, intermediate and long term. Intermediate and long terms are cyclical and secular respectively.
We have been in a secular bear market in equities since 2000 and a secular bull market in commodities since 2000. However, the next secular move will be the opposite, a secular bull in equities and a secular bear in commodities. I don't think it is starting yet for equities, but it is close. And when you are talking about secular moves, it is a cloudy thing on exactly when it begins. For instance, the secular bull move which went from 82-2000 in equities, did it start in 82 or was it the low in 74? I count it as 82, since that's when it broke out to new highs and went on. So this secular bull may start in 2014 or 2015, but the low may already be in place from 2008. We won't know until after the fact.
Cyclically, i think we are also in a bull market which started a few weeks ago in early Oct. Since we are in a cyclical bull, and perhaps the start of a secular bull, you are always going to have horrible news but strong markets.