Rally on stimulus package

Looks like there will be a bounce as there is a degree of capitulation i.e professionals (not the final one when Walt & Irma finally sell) coinciding with all 4 indices at/nearing support or old resistence becoming support. Asian indices downmove has basically stalled for 3 days. Last but not least Mon 20th is a Gann day (last was 6th)

IBM, stimulus package etc will be used to gun stocks - easy to do as sell off leaves few sellers on the ask and many new shorts will have gone on. Expect the same kind of "we are saved" media frenzy as with first discount rate cut. The Chimp man who has only ever created problems is supposedly going to solve one.

Keeping long dated options but closing out short dated options even deep ITM and sitting back for the chance to add/reload when rally subsides and VIX starts to contract at the peak.


Maybe VIX is low because we have basically had a [down] trend and trends actually havve lower Vix than chop?
 
Quote from robbie380:

glad to see this. i got long near the close and did some buying after the close.
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Me too. Loaded up in AH plus some futures. IBM good feelings continuing. Asia way off lows. Next, GE in about 4 hours better be good.

Feels like we might be OK - plus I get my katrina voucher from Idiot Boy later today.
 
Why a rally, are you kidding.

if I got $800 bucks I would pay off credit card debt.

So hows that boosting GDP ?

Unless I am getting $800 bucks every month, then it will have no effect.

THIS IS A SIGN THAT THEY ( EGG HEADS) SEE MASSIVE TROUBLE A HEAD ( and that can only be asset deflation)

This is A SELL SIGNAL...

Reference : Japan 0% interest rate did not spark investment and risk taking for 16 years and counting.

SP500 dividend yield is only 2.59% (approx), stocks are cheap when this yield is above 6%. Ok may not get there is time...but watch out after deflation really kicks in.
 
The Australian SPI had very strong rally in the afternoon, likewise with other Asian Markets. The Dax and Eurostock 50 also opened much higher.

As an observation and an educated guess, the US markets will open much higher then fall off a bit later on in the morning. Around 2:00-2:15 pm New York time. the Fed will cut rates by 50 basis points and the market will soar with the S & P closing about 1386. However, like all bear market rallies, this rally will be sharp and swift, but it won't last!
 
Quote from Trader5287:

Me too. Loaded up in AH plus some futures. IBM good feelings continuing. Asia way off lows. Next, GE in about 4 hours better be good.

Feels like we might be OK - plus I get my katrina voucher from Idiot Boy later today.
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yeah i think i will at least flat as long as GE doesn't crap all over everything. im long like 20k shares of random stuff i caught.

did you see the big buyers after hours pushing up C, WFC, and such?
 
Quote from Digs:

SP500 dividend yield is only 2.59% (approx), stocks are cheap when this yield is above 6%. Ok may not get there is time...but watch out after deflation really kicks in.
More...


lol 6% yield? so you think the market is gonna drop by over 50%?
 
Asian and Aussie markets up not because that there is a BUY signal. THEY DO NOT LEAD !!

The USA markets is unpredictable. So they are cover shorts now ! Thats all.

This is a ONE musket ball shot, and likely to fail.

Watch for the sell off in the afternoon trade after bears find they have higher prices to sell on.
 
woohoo just saw the AA i bought at 28.63 after hours was mentioned positively in barron's! let's hope it carries over to the open.

briefing.com

01:16 AA Alcoa mentioned positively in Weekday Trader - Barron's Online (28.79 )


ok i gotta get some sleep....shouldn't have taken that 4 hour "nap" earlier :-(
 
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