What happened?

[wjk]

To the dollar-equities inverse trade? Think I'll become a perma bull. ALL news and events are a reason to buy.

Dollar down = buy
Dollar up = buy
Cramer says buy = buy (who would of thought?)
Trading programs: Increase in short interest = send buy orders
All other events including technical divergences, overbought conditions, geopolitical events and other = buy

Note to self. Re-train to chase rallies without pullbacks. Retrain hand to cramp up when urge to short arises.

Lesson learned: When the fed utters the word quantitative easing, exit all shorts immediately and bet the farm long.

Is that about right?

 

[Magna]

The definitive explanation for this situation was posted back on Aug 6th. Since then nothing has really changed...

Quote from Angrycat:

GM chapter 11 = PRICED IN
125K+ jobs lost from GM chapter 11 = PRICED IN
unemployment @ 9% = BETTER THAN EXPECTED
unemployment @ 10% = DOW SOARS
unemployment @ 11% = GREEN SHOOT RALLY
unemployment @ 12% = ALREADY FACTORED IN
unemployment @ 35% = DOW DROPS 100 POINTS
Government spends 1 trillion of OUR dollars = STIMULUS
North Korea fires nuke = RALLY
Israel bombs Iran = 30 MINUTE END OF DAY RALLY
world explodes = ASIA RALLIES
PMI crashes = HUGE RALLY
No jobs are created = RECESSION ALMOST OVER
U.S. debt overwhelming = TOO BUSY RALLYING TO CARE
Consumer stops spending = RETAIL RALLY
Banks are insolvent = SIGNS OF STABILIZATION
American auto industry BK = GOOD THING 8:58 AM

Banks pass scam stress tests = HUUUUUUUUGE RALLY
Banks "only" need 75 billion = OUT OF THE WOODS
Banks pass a real stress test = NEVER WOULD HAPPEN
Banks pay back tarp = LATE DAY SURGE
Banks can't pay back TARP = EARLY MORNING SURGE
12% mortgage delinquency = GOOD FOR STOCKS
Hundreds of thousands of mortgages underwater = HOUSING BOTTOMED
Dollar rises = RALLY
Dollar crashes = RALLY
Inflation = BULL MARKET
Deflation = BULL MARKET CONTINUES
REFLATION = MASSIVE SHORT COVERING RALLY
Gold rises = STOCKS RALLY 8:59 AM
Gold falls = STOCKS RALLY
CONSUMER INSOLVENT = CONSUMER IS SPENDING

OIL @ 50 = BULL RALLY
OIL @ 60 = GREEN SHOOT
OIL @ 100 = IMPORTANT RECOVERY SIGN
OIL @ 20 = TAX BREAK And the one we should all interpret correctly:
NO ONE IS BUYING STOCKS = BILLIONS ON THE SIDELINES