Is DOW 11,000 A Bull Trap?"

SPY Next Week

  • Bullish

    Votes: 37 33.3%

  • Flat

    Votes: 14 12.6%

  • Bearish

    Votes: 42 37.8%

  • I prefer to keep my opinion to myself

    Votes: 18 16.2%
  • Total voters
    111
Quote from S2007S:

haha become more financially knowledgeable?

Like the way he is throwing trillions at a broken economy is the best way to fix the economy!!!

Like the way he has driven down rates to create the next asset bubbles.

Like the way he bought MBS to artificially drop mortgage rates to historical lows

Just like the way he bailed out all those worthless companies.

Like the way the continue to print money and hand out years worth of unemployment benefits.

Like the way they handed out free money for first time home buyers.

Yep thats showing financial responsibility.


Bubble ben bernanke knows how to create bubbles and nothing more.
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very well said. however, let me elaborate one thing. Bernanke and his associates are not concerned about bubble, or whatever. All they care about is how they can take more profit. we are traders, right?. just by looking at the charts you can easily see what I am talking about.

First, take everything down, force people to sell their assets
second, make sure everyone thinks that sky is falling, and if we don't give money to the banks, we will all die
Third, Hurray,.. My brothers now you have free money and everything is cheap, lets have a buying celebration.

can you find any better business plan? LONG live fed, Long live GS :D :D :D
 
Quote from S2007S:

yep, I think tomorrow Im finally throwing in the towel, selling my shorts and keeping the only 3 long positions I have.
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that will be a top signal if ever there was one.
 
JPM beats. China leaks 11.9% growth in prior quarter. Retail sales just beat expectations.

You can't beat a rigged market. It's going up, up, up.
 
Quote from shortie:

http://www.marketwatch.com/story/contrarian-analysis-of-dow-11000-2010-04-06?reflink=MW_news_stmp

April 6, 2010, 12:01 a.m. EDT
A tired market
Commentary: Contrarians worry that there's too much complacency out there

By Mark Hulbert, MarketWatch

ANNANDALE, Va. (MarketWatch) -- With the Dow just two-tenths of a percentage point shy of the 11,000 level, even aggressively bearish advisers would be foolish to confidently predict that the market won't surpass that level in coming sessions.

Nevertheless, the fact remains that the sentiment winds are not blowing in the market's sails right now. If the Dow is to rise decisively above the 11,000 level, therefore, the impetus will have to be something else besides prevailing sentiment.

Consider the average recommended exposure to the stock market among short-term market timers -- as measured by the Hulbert Stock Newsletter Sentiment Index (HSNSI). It currently stands at 56%.

About the only good news inherent in that number is that it's lower than the 65% level to which this sentiment index rose in early January, right before the January-February correction set in.

But from almost any other perspective, the HSNSI's current level is worrisome. For example, but for that period of even greater bullishness in early January, the current level is as high as the HSNSI has been since May 2007.

....

The picture painted by the CBOE's Volatility Index (INDEX:VIX) is potentially even more worrisome: It now stands below its closing low in early January. In fact, the VIX is currently very close to where it stood at the stock market top in October 2007.

The bottom line from a contrarian point of view: The stock market's difficulties in breaking through the 11,000 barrier are not surprising. The market's apparent fatigue is consistent with too much complacency, if not outright bullishness.

Contrarians therefore are waiting for more than a few advisers to turn bearish. That most likely means that the stock market needs to pull back a bit.

If, in such a health-restoring correction, advisers quickly turn more bearish, then contrarians will then become more confident that the Dow will more convincingly make an attempt at breaking through the 11,000 level.
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Dow changes constantly........not the same index as it was 3 years ago. No Citi, GM or AIG.
 
Quote from shortie:

this bull is stronger than i thought. :eek: but i would like to see RTH reaction before jumping to conclusions.

tomorrow may be critical. let's say JPM has a decent report. so two major DOW components (as opposed to little AA) have good reports. if the market does NOT gain (flat or down) the bears win and it will be all downhill from there.

if it is UP, the bears are toast.
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two great earnings reports and the market is up only 0.5%. it can't even break through the open. a red day is still a possibility.
 
Quote from shortie:

two great earnings reports and the market is up only 0.5%. it can't even break through the open. a red day is still a possibility.
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LOL! K.
 
Financials continue to move higher, all at intraday highs right now.

There is absolutely no stopping the financials as the bailout has given them tens of billions of dollars worth of revenue and countless opportunities to make billions more moving forward.
 
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