Parabolic move is what we are witnessing..8-2020

[S2007S]

the fed is going to be changing its stance and the markets are even more for it. Go figure that the fed is still fighting LOW inflation.


They will do anything and everything to keep wallstreet satisfied. Its absolutely mind boggling that they bow to wallstreet



Powell is expected to discuss a policy of allowing inflation to range on both sides of a target, letting it rise more than the Fed might normally do to help keep the economy from being trapped in low growth.



https://www.cnbc.com/2020/08/26/the...-era-tool-to-fight-against-low-inflation.html

 

[themickey]

the fed is going to be changing its stance and the markets are even more for it. Go figure that the fed is still fighting LOW inflation.

Powell is expected to discuss a policy of allowing inflation to range on both sides of a target, letting it rise more than the Fed might normally do to help keep the economy from being trapped in low growth.

https://www.cnbc.com/2020/08/26/the...-era-tool-to-fight-against-low-inflation.html

Beauty!!! More upside yet.

 

[Rickshaw Man]

Study what happens to the incumbent president when he runs for his second term. This should help anyone who is grappling with what's going on, right now.

 

[Tradex]

This is a stunner.


View attachment 238018

Yes, but the Nasdaq only returned about 10.8% a year (average) during the last 20 years, not bad but nothing to really write home about either.

I am sure some good ET traders earned at least twice that return in that same 20-year period, right guys...?

 

[Specterx]

That our stock market is soaring due to currency debasement and inflation expectations is not as good as it sounds. In fact, it's not good at all.

Technically the market isn't going up due to inflation expectations. If it were, you wouldn't see forward earnings multiples going to the moon.

What sure is driving it up though is the market's belief that the Fed will never again raise rates, and consequently everyone with money is desperate to escape into any financial instrument with any sort of positive yield. I'd expect to see SPX PE settle around 50x, and 75-100x for the Nasdaq. It's perfectly given that large-cap indices are effectively a risk-free asset, IF the Fed indeed stays at ZIRP for years to come...

 

[Overnight]

More rounds of QE?? For what possible reason? There is no way that takes place but I'm hearing this and this is what is creating this gigantic move

https://www.cnbc.com/2020/08/26/the...-era-tool-to-fight-against-low-inflation.html

"...Swonk said that if the Fed is able to encourage some inflation, it could have a bigger impact on the labor market and result in higher wages."

GAH! What's the bloody point? If inflation goes up, the purchasing power workers have goes down, so what do higher wages do? It just all evens out in the end, and the people still have to spend the same percentage of their wages to maintain their cost-of-living. I.E., they still live paycheck-to-paycheck and cannot save. They just put it all on the credit card and hope for the best later on!

Maddening!

 

[trader99]

Thats it 12000, im going short here

Just kidding. I dont hold overnight. Only day trade. So will looking for short intra day signals as i normally do. NQ doesnt offer many these days.

I daytrade equities nowadays.

Just for kicks on my IB sim account I put on 11 NQ lots and before I know it's up again. I sold. Then later on I bought again. It went down 11 handles I sold. Stupid me. Minutes later it went up 30 pts from where I sold. Albeit this was on sim. Just crazy. All day green. Every dip is bought. Stocks aren't allowed to go down.

 

[comagnum]

This is what a blow off top looks likes - all logic goes out the window. .

It's the Fed's irrational exuberance, fixing a debt crisis from 2008 by taking the debt bubble parabolic. To bad tax payers will pay for this, future generations are screwed. The xfer of wealth to the richest 1% has also gone parabolic.

The breadth has been at historical lows, during the big NDX100 (QQQ/NQ) rallies you see more & more $ flowing into the mega cap tech darlings. This has been a precursor to the prior big turns when the market looked bullet proof.

The Wall Street cats are recommending the tech over-weighting, at the 1999 dot com top, over 90% of analysts had strong buys on the tech stocks, panic buying gave way to a 75% NDX crash while the tech stocks fell much harder.

As always - the new herd will claim this time it's different - yea it is, it's a massive debt bubble. Red lights are flashing,

 

[trader99]

This is what a blow off top looks likes - all logic goes out the window. .

It's the Fed's irrational exuberance this time, taking the debt bubble parabolic. The tax payers will pay for this, meanwhile the transfer of wealth to the richest 1% has sky rocketed.

The breadth has been at historical lows, during the big NDX100 (QQQ/NQ) rallies you see more & more $ flowing into the mega cap tech darlings.

The big Wall Street cats are recommending the tech over-weighting, keep in mind at the 1999 dot com top, over 90% of these analysts lured in the herd close to the ultimate top.

As always - the new herd will claim this time it's different - yea it is, it's a massive debt bubble.

I remember those times. There were mutual funds starting that focused a 100% on just tech stocks. They were popping up everywhere. Most of them debut right at the top of the market. They probably top ticked those prices too. Then in 2001-2002 most of those mutuals were down 80-90% and shuttered operations completely. Sorry for those retail mutual fund investors who bought into the fund thinking it's safer than buying individual stocks not knowing that the those mutual funds were superconcentrated on just tech names at the very top of the market.

 

[S2007S]

Technically the market isn't going up due to inflation expectations. If it were, you wouldn't see forward earnings multiples going to the moon.

What sure is driving it up though is the market's belief that the Fed will never again raise rates, and consequently everyone with money is desperate to escape into any financial instrument with any sort of positive yield. I'd expect to see SPX PE settle around 50x, and 75-100x for the Nasdaq. It's perfectly given that large-cap indices are effectively a risk-free asset, IF the Fed indeed stays at ZIRP for years to come...

Never raise rates, exactly however one inkling of a slowdown and rates will go solidly negative.