Market refuses to go down

[Mvic]

Quote from S2007S:

The USD collapse is going to happen, but no one seems to care or have any worries, it's going break down even further. You could see 1.50 EUR sometime over the next 3 months. The more monopoly money they print the quicker the dollar collapses, something major has to happen in this irrational marker.

This actually works with the scenario I see which is a melt up or blow off top to this move in equities. If the dollar does hit 1.50 we should also close the gap on the SP and hit 1200+ before the rally is done.

As long as we have a weakening USD we can have rising equities without a substantial economic recovery.

 

[S2007S]

Quote from Mvic:

This actually works with the scenario I see which is a melt up or blow off top to this move in equities. If the dollar does hit 1.50 we should also close the gap on the SP and hit 1200+ before the rally is done.

As long as we have a weakening USD we can have rising equities without a substantial economic recovery.

As much as I hear you screaming that a continued lower dollar will lead to higher equities I just cannot agree, I think a falling dollar is going to create a market unlike no other, to think a weakening dollar can continue to create economic recovery just baffles me.

 

[dont]

Quote from S2007S:

As much as I hear you screaming that a continued lower dollar will lead to higher equities I just cannot agree, I think a falling dollar is going to create a market unlike no other, to think a weakening dollar can continue to create economic recovery just baffles me.

Its because a weakening dollar is inflationary, inflation up companies have pricing power stocks go up. But in foreign currency terms, its gone nowhere.

Look at Zimbabwe in local currency terms its stock market was booming while the currency and inflation where out of control. Now does it make sense, no of course not.

 

[Mvic]

Quote from S2007S:

As much as I hear you screaming that a continued lower dollar will lead to higher equities I just cannot agree, I think a falling dollar is going to create a market unlike no other, to think a weakening dollar can continue to create economic recovery just baffles me.

Take it from a guy who has learned the lesson several times the hard way, trade what you see not what you believe. The inverse correlation is so stark that a blind man could see it

http://www.nowandfutures.com/key_stats.html#tic

July TIC flows net 15B vs 60B expected, 90B prior and deficits are rising, is it any wonder the $ is weakening.

 

[pitz]

Quote from S2007S:

All it is is a bear market rally but all the talking idiot permabulls are making people think it's a "V" shaped recovery. Like I said before the us economy will experience the lost decade just like japan did.

2000-2009 = "the lost decade" -- maybe??

How quickly people seem to forget that the market has gone absolutely nowhere for the past decade.

 

[S2007S]

Quote from pitz:

2000-2009 = "the lost decade" -- maybe??

How quickly people seem to forget that the market has gone absolutely nowhere for the past decade.

2009-2019+


will be the lost decade, you don't go back and claim the biggest boom of our time the lost decade.


The tech boom, dot com boom, credit boom, job boom, housing boom, gdp boom, you call that a lost decade????

 

[pitz]

Quote from S2007S:

2009-2019+


will be the lost decade, you don't go back and claim the biggest boom of our time the lost decade.

"biggest boom of our time"? WTF are you talking about? You mean the decade where practically everyone doing stuff of value lost their jobs? The decade where debt absolutely ballooned (with no increase in exports to show for it). The decade of the collapse of the manufacturing industry?

The tech boom, dot com boom, credit boom, job boom, housing boom, gdp boom, you call that a lost decade????

There was no 'job boom' (in fact, jobs and income declined precipitously). The 'tech boom' was over by 2000. GDP didn't really grow either. For the average person, the past decade has been one of economic misery, the effects of which, were only sligtly placated by rising debt.

 

[syswizard]

Quote from S2007S:

2009-2019+

will be the lost decade, you don't go back and claim the biggest boom of our time the lost decade.

The tech boom, dot com boom, credit boom, job boom, housing boom, gdp boom, you call that a lost decade????

Exactly. Now it's reversed:
tech crash, credit crunch, job disaster, housing mess, GDP down....and the list just goes on and on.
The only thing certain now is for continued cost-cutting by businesses of all sizes...and continued high bankruptcy rates for both households and businesses.

 

[Mvic]

Looks like we are getting some short capitulation now.

 

[FB123]

Quote from Mvic:

Looks like we are getting some short capitulation now.

It never ceases to amaze me how many times the same stuff happens again, and again, and again, and again...