what a reversal!

[S2007S]

Quote from piezoe:

The FED has declared this a bear market. If the first 5 days are bad, then it jinxes the entire year. You have to be crazy to buy these dips.

The market has been on a tear for the last 6 months, the Fed notes state their desire to either raise or keep rates as is and you all want to buy in on the dips.

Come on, use your brains not your bulls...

Indeed! The only thing I would add is that the market has been going up for 3 years, not just 6 months. And we are moving into a period of weakening fundamentals. This is a time to exercise extra caution on the long side. A sharp correction would be in keeping with the present equities climate.

markets should see a minimum 5% correction...going to be interesting to see what japan markets do tonight.

 

[Landis82]

Quote from thehangingman:

Guys,

The FED has declared this a bear market. If the first 5 days are bad, then it jinxes the entire year. You have to be crazy to buy these dips.

The market has been on a tear for the last 6 months, the Fed notes state their desire to either raise or keep rates as is and you all want to buy in on the dips.

Come on, use your brains not your bulls...

Excuse me, but the valuation "gap" between BONDS and STOCKS is at a level that is near historic extremes . . . meaning that the BOND market is at the same level of valuation ( relative to stocks ) as the stockmarket was back in March of 2000.

If anything, BONDS are a STRONG SALE here.

 

[noddyboy]

Quote from S2007S:

markets should see a minimum 5% correction...going to be interesting to see what japan markets do tonight.

Amazing! The bears get to live another day...and the bar chart looks like a pricing error on my terminal.

 

[scriabinop23]

It seems 80% of the people on ET are bears right now.

At the same time, buy side research is overwhelmingly bullish right now.

PS: china's latest round up is likely a result of this:

http://english.peopledaily.com.cn/200612/25/eng20061225_335619.html

that tax law potentially frees up another 25% for positive earnings.

i'll continue to go net long and short the frothy stuff until I see a reason (like faltering jobs). GM failing to sell cars in Dec is not an indicator of the consumer's health, when Nissan and Toyota are announcing record #s same month. This is about preference, not free cash flow.

 

[scriabinop23]

Quote from Landis82:

Excuse me, but the valuation "gap" between BONDS and STOCKS is at a level that is near historic extremes . . . meaning that the BOND market is at the same level of valuation ( relative to stocks ) as the stockmarket was back in March of 2000.

If anything, BONDS are a STRONG SALE here.

the caveat: housing conundrum.