is the market ever going to go down

[noddyboy]

Quote from GrandSupercycle:

Here you go OP


DOW weekly chart with updated rising wedge scenario and large megaphone.

i.e. find some low points and draw a bottom line. find some high points and draw a top line.

If bottom line goes up faster, then it is a wedge. so bearish.
If bottom line goes up slower, then it is a megaphone. so bearish.

oh wait...what can possibly be not bearish?

 

[GrandSupercycle]

02-23-12
Quote from Chausey:
Anybody blindly long will wake up one day ready to take the money again to find out they just lost the past 50 days of gains.

+1000

 

[Frank Coolidge]

Yes I agree that the market is being manipulated and they want to continue to suck all the retail investors in before they drop it. See they also do that so all the contrarians will eventually crack and second guess themselves. They got you then.

The market is coming down but they have so many ways to keep propping it up so it may be next year.

 

[clacy]

You shouldn't get married to any position, but if you must, then I would get bullish on gold. Of all the asset classes, gold has the "best" reasons for going higher, IMO.

Money printing by virtually every central bank.... Check
Fear of currency devaluation and bond defaults.... Check
Geopolitical uncertainty..... Check
Negative Real Interest Rates.... Check

What's not to love?

Of course that can change at any minute, but I'm not sure how at this point. It is fairly high already, but what isn't?

Government debt seems like a bubble. Stocks are being propped up. Commodities are more likely to correlate with stocks.

The developed countries have painted themselves into a corner, mostly because of demographics, where they have to keep interest rates low (with real rates negative) for the foreseeable future.

In fact, they have even been nice enough to announce this strategy.

 

[Trendytrader]

If the USD keeps getting sold off like it has over the last few weeks then market will continue to climb. However, it is all relative when you convert S&P500 or DJIA to another currency or gold or oil. On that basis we are standing still.

USD is looking very sick. It appears we have central bank action at work.

 

[Ted85050]

I went short on a gambling stock and it continues to sky rocket. Am I going to have to wait until after the election in November to break even?

 

[Frank Coolidge]

Yup. I agree load up on Gold. The major cycles last about 20 years and money flows from Gold and silver into real estate and then back into the stock market. It doesn't mean you can't make money in any of these areas when the majority of people are not in them. Actually about the time the masses all focus on one area is when you know it is time to move on.

 

[travelingtrader]

Pardon my ignorance, but does the Fed REALLY buy tons of ES and SPY to drive the market up? Or are you guys just joking around?

 

[joespo]

Quote from travelingtrader:

Pardon my ignorance, but does the Fed REALLY buy tons of ES and SPY to drive the market up? Or are you guys just joking around?

LOL! I am wondering the same thing!
Either I'm stupid for not knowing this or stupid for blindly believing it until I saw this post!

 

[ScalperJoe]

Not sure if they actually buy the ES and SPY outright. The Fed creates an 'easy money' policy by purchasing US Treasuries which floods the banks with liquidity. This money ends up funneling into the stock market, since rates are so low.

There is always chatter of a PPT (plunge protection team) but the Fed will never admit it, so it's labeled as conspiracy theory.

However, the term "quantitative easing" or "QE" used by the Fed is simply a defacto way of pumping up the market.

Check out this link for more info:

http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets