the Market will not like this--------

[achilles28]

Quote from executioner:

U.S. 1Q unit labor costs revised higher to 1.8% vs. 0.6%

THIS IS VERY INFLATIONARY AND SOMETHING THE FED REALLY LOOKS AT.

Rising labor costs signifies the second trigger of the inflationary trap.

Fundamentally, this spells the end of the party.

The only way the Fed can get out of this - increasing rates.

Economics 101.

This doesn't mean the axe will drop tomorrow. Look at the 2001 run-up.

We could go up awhile before we go down.

Writing is on the wall.

 

[trickshot]

Quote from stock_trad3r:

Remember the fed never hinted at a rate reduction

The fed has been cautious about inflation for the past year.

But the market chose to read it the wrong way. Remember the "experts" have been feeding the street with the triple rate cut bullshit since last year, up till like a month ago, the talking heads on cnbc were still talking about rate cuts lol.

Now that the 10 year has broken 4.9 and approaching 5 it couldnt be any clearer.

I chose to back off when the 10 yr hit 4.9, looks like I might have saved myself from some pain here.

 

[ByLoSellHi]

Quote from makloda:

Not predicting a market move, dip buying is about using the current underlying trend in your favor, not about predicting. I prefer not to fight the market.

Every time you shout "buy the dip," you insinuate that dip isn't the beginning of a larger and more substantial retracement (or worse).


Or do you profess to have perfect knowledge as to what signals or doesn't signal the beginning of a correction?

 

[LeonPhelps]

Quote from Joab:

The market is in a melt up right now and Osama Bin Laden himself could walk through the streets of NYC and the market wouldn't budge.

Unless he was wearing one of these; then the market would skyrocket!

 

[makloda]

Quote from ByLoSellHi:
Or do you profess to have perfect knowledge as to what signals or doesn't signal the beginning of a correction?

I don't have any knowledge. I just do what historically worked based on statistical evidence: buy/sell short term corrections within an underlying longer-term trend. This worked in my backtesting and that's what I trade.

I was never able to make money putting my finger in the wind and declaring the end of the bull market and then going net short 200% based on that gut feeling. Maybe you can.

 

[dealer]

Quote from stktrdr:

why all the noise?

Dow and S&P are ABOVE where they were this time last week!

This is a mere fluctuation, not a selloff!

Buying Dow futures here.

But this week the chart looks weaker. Also similar setup in SP

 

[ByLoSellHi]

Quote from makloda:

I don't have any knowledge. I just do what historically worked based on statistical evidence: buy/sell short term corrections within an underlying longer-term trend. This worked in my backtesting and that's what I trade.

I was never able to make money putting my finger in the wind and declaring the end of the bull market and then going net short 200% based on that gut feeling. Maybe you can.

You could have said the same thing in 2000.

You'd be buying just a few dips in a very short time frame and losing your ass.

 

[stktrdr]

Quote from dealer:

But this week the chart looks weaker. Also similar setup in SP

charts? we don't need no stinkin' charts!

13500 WILL hold!

 

[makloda]

Quote from ByLoSellHi:
You could have said the same thing in 2000.

You'd be buying just a few dips in a very short time frame and losing your ass.

Earnings Yield vs IRate delta was -3% in 2000. Its +4% now. Little difference. Of course, starting today rates could go up 2% tomorrow and earnings could implode next couple of quarters, but I prefer not to anticipate and rather react once it materializes.

 

[ByLoSellHi]

Quote from makloda:

Earnings Yield vs IRate delta was -3% in 2000. Its +4% now. Little difference. Of course, starting today rates could go up 2% tomorrow and earnings could implode next couple of quarters, but I prefer not to anticipate and rather react once it materializes.

You're cherrypicking a few out of literally dozens of catalysts that have the potential to initiate a correction or a substantial retracement (at some point, the lines blur anyways).