Who exactly is buying?

15% drop ben would be in balls deep wait he is in balls deep now at at time highs. this is not fundamentals moving the markets right now.

Quote from Nine_Ender:

I guarantee you the US fed wouldn't bat an eye if markets dropped 15%. This is NOT their focus. They are focused on the economy and jobs, still relatively weak but getting better. You are confused about what the market represents. It's companies and their profits/balance sheet, which largely add wealth to those who can afford to participate by owning those companies.

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Quote from Nine_Ender:

I guarantee you the US fed wouldn't bat an eye if markets dropped 15%. This is NOT their focus. They are focused on the economy and jobs, still relatively weak but getting better. You are confused about what the market represents. It's companies and their profits/balance sheet, which largely add wealth to those who can afford to participate by owning those companies.
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You're dead wrong here. It's all about pushing the markets high so that the party continues and the champagne flows as always, no-one cares about the unemployed - at best they create some ridiculous programs so the unemployed are converted into employees, doing jobs that don't need doing simply because it makes the numbers look better (for the markets).

Take a good look at the numbers. The revenues and profits have stagnated y/y, there are no new drivers of the US economy - simply FED money propping it up.
 
Quote from Nine_Ender:





I guarantee you the US fed wouldn't bat an eye if markets dropped 15%. This is NOT their focus. They are focused on the economy and jobs, still relatively weak but getting better. You are confused about what the market represents. It's companies and their profits/balance sheet, which largely add wealth to those who can afford to participate by owning those companies.



I don't know how anyone can say this after all we've experienced this last decade. I mean, what about the morning five years ago when Kerviel from SocGen had to unwind his massive position and sents the markets diving. We had a surprise rate cut of 75bps 5 min later!! Im sure that was pure coincidence. Or the fact that CB's like Japan are openly saying they are targeting asset inflation and buying stocks outright. It's become all about asset prices. by the time we get to the goal of sub 6% employment the Dow will be at 50k. No consequences there.

And stock prices discount FUTURE earnings. Not present earnings. If earnings are so great, why 5 years later although we have record earnings, is the fed still in crisis mode? Because despite the current earnings, the fed knows they are not sustainable. So why is the same multiple awarded as other times??Fed is backstopping everything.

I remember a while back when Bush was president, he was pushing to privatize social security. Telling people to invest it in the stock market cuz it brings an average return of +6%yr. Take the strain off the government. I remember at a hearing some senator asked the Fed what he though about that. I remember he said that its a terrible idea. He said the whole purpose of a market is that it has a risk premium attached to it. Thats what makes markets work. Where is that guy?
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Because the market is manipulated by the computers and can only go under the designed or pretermined model. Once the trend starts, it won't finish until the trend is completed. That's the only reason of market's going up.
Who programmed or designed the model? Ask the US government, Barrack Obama, or Ben Bernanke. Because the US stocks can't fall(collapse), if it falls, everything else will fall one after another, that's the crumbling of the financial world. Check the chart in 2011 and compare with the 2008, you will find it should have been collapsed in 2011, but the price action in the week(26.11.2011 - 03.12.2011) has changed the pattern because they have programmed the model to alter the trend.
I could be banned here, but I have to speak the truth out.
 
i know people will think that's a joke but i partly believe it. i been from the school of thought that only a nice gap down starts selling because you pull in human emotion.

Quote from TILT2:

Because the market is manipulated by the computers and can only go under the designed or pretermined model. That's the only reason of market's going up.
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I've been 50/50 long stocks and bonds since 2006

things happen, plus I sold some gld

that leaves me with too much cash

cash is a guaranteed loser

I sold some bonds at 126 and bought some back at 132

the rest I have just been buying stocks every single day

and these are mutual funds, so I only get filled on the close

at the rate I'm going in 90 days I will finally be back to 50/50 stocks and bonds

so to answer your question, I am buying
 
Quote from d08:

You're dead wrong here. It's all about pushing the markets high so that the party continues and the champagne flows as always, no-one cares about the unemployed - at best they create some ridiculous programs so the unemployed are converted into employees, doing jobs that don't need doing simply because it makes the numbers look better (for the markets).

Take a good look at the numbers. The revenues and profits have stagnated y/y, there are no new drivers of the US economy - simply FED money propping it up.
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Simply said Simply Said

Its simply FED money propping it up and thats what so many people fail to understand, this isnt fundamentals this isnt corporate earnings, this isnt job growth, its smoke and mirrors its the trillions of dollars BUBBLE ben bernanke has contributed to the system to prop the entire world economy up, there will be books written and documentaries filmed when the next crisis comes, it will be so many times greater than the last crisis no one this time will have a clue on how to fix it, because there will be no way to fix it.
 
This seems like a good place and time to post about Marketwide Circuit Breakers. The new rules went into affect April 8 with hardly any fanfare. You will NEED this information at some point...

General Info...
http://www.bloomberg.com/news/2013-...urbs-before-new-circuit-breakers-enacted.html

CME...
http://www.cmegroup.com/education/files/faq-eq-hours-and-limits.pdf
http://www.cmegroup.com/trading/equity-index/price-limit-guide.html
http://www.cmegroup.com/trading/fixing-price.html?tabs=20

Nasdaq...
http://www.nasdaqtrader.com/content/marketregulation/mwcb_faq.pdf


Trade On!
 
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