Most of this rally was due

[JimmyJam]

Quote from DeepFried:

Oscillators don't work so well in strongly trending markets. Things like RSI are not a very good guide under present circumstances. No frickin' way am I shorting the equity markets until we actually get price action that's heading lower.

Now go tell everyone else that.

 

[S2007S]

Quote from myminitrading:

For sure the inflation numbers will be so market friendly everyone will start kissing each other, this is such a rosy economy, again just i time for the elections. To bad the polls dont favor the crooked Republicans. All this for nothing, I hope the Dem sweep both houses. Then the market will crash and I can find some decent buys.

agree, I think the inflations #'s this week will come in Perfect. Why wouldnt they.

As for Gas and oil being down this is only boosting our economy to the point where I believe rates will have to move higher. Been hearing that the housing correction may be over. I hate saying this, BUT WHAT HOUSING CORRECTION MAY BE OVER, were just in the 1st inning of a long housing correction to come. Most think its done with. FOOLS

 

[S2007S]

If the Dems take both, market is going to fall.


I wish the elections would come quicker, this is taking to long.

 

[DeepFried]

Quote from S2007S:

"Why bet, in the middle of a bull trend"

IT wasnt a bulltrend until we broke out to new highs.

Um...so you're admitting that it's a bull trend. So, again, why short in expectation of a 2 or 3 sigma break in the opposite direction?

If oil keeps going up this week and the inflation numbers suck maybe we'll get a pullback here but in the meantime I'm not getting up in the morning thinking, gee, what can I short today.

 

[S2007S]

Quote from DeepFried:

Um...so you're admitting that it's a bull trend. So, again, why short in expectation of a 2 or 3 sigma break in the opposite direction?

If oil keeps going up this week and the inflation numbers suck maybe we'll get a pullback here but in the meantime I'm not getting up in the morning thinking, gee, what can I short today.

Im admitting that its been in bull trend since breaking May highs.

Im telling you in May the drop was so quick no one had time to short at the top. No one can catch the bottom and top perfectly.

So when you wake up what are looking to buy as the market continues to move into even more overbought levels.

 

[krazykarl]

Quote from S2007S:

How come the RSI seems to work when the markets are dropping like a rock and are completely OVERSOLD.


No one will be able to time this market, once the drop starts, you will be late into the game.

the market can stay irrational longer then you can stay solvent.

 

[moo]

Quote from myminitrading:

For sure the inflation numbers will be so market friendly everyone will start kissing each other, this is such a rosy economy, again just i time for the elections. To bad the polls dont favor the crooked Republicans. All this for nothing, I hope the Dem sweep both houses. Then the market will crash and I can find some decent buys.

Perhaps one reason for the rally is that the market has begun expecting a divided government. It's good for the country, the economy and the market, if the government can't get much done.

 

[Hydroblunt]

Quote from krazykarl:

this rally is not fed-induced.

Whoa that's a very bold statement. It's definitely fed induced, just not through any public statements or hints.

 

[krazykarl]

Quote from Hydroblunt:

Whoa that's a very bold statement. It's definitely fed induced, just not through any public statements or hints.

lol - sorry, you got my meaning though.....

 

[piezoe]

I don't know what the market is going to do, and neither do any of you. It is pointless to speculate. There are a few things we do know, however, from past experience. One is that it would be uncharacteristic for the Fed to raise rates right before an election, but they have often paused before an election, as indeed this Fed Board did do. While the Dow is at an all-time high, both the S&P and NASDAQ are not yet close to their all-time highs. The market will, at some point, unknown to any of us, reach a maximum and then come down. There will be regression to the mean as there always is and always has been. As someone pointed out, the building/lending bust has barely begun and certainly has a long way to go. A strong bull market in the face of deteriorating economic fundamentals is a potentially dangerous bull market. Anyone holding positions overnight should be increasingly cautious. The market will tell us when it is ready to go down. So far, it has only told us that it wants to continue going up.