Who exactly is buying?

[TILT2]

Quote from dealmaker:

Last Sunday I was listening to Bob Brinker's MarketTimer radio show and one of the callers asked if he should take out a loan on his free and clear house to invest in the stock market, that's who is buying...

Geez...

 

[TILT2]

Quote from kashirin:

Let's see JGB and Nikkei collapse this year maybe even this summer

The japanese are crazy. Do you have any fundamental or technical reason to support your view? Thanks.

 

[zdreg]

Quote from pfranz:

Your thinking is very similar to mine (though I know nothing of south america,I believe what you say). But for the sake of objectiveness, it could be that Bernanke is doing things better than those dictators. You can never assume that the same thing done by different people has same outcomes.
My opinion, anyway, is that it will end badly, the more they try to avoid the crisis, the bigger the disaster will be.
Maybe (I'm just speculating) the '29 crisis was the best possibility: a period of difficulties to clear all the damages accumulated in the past,then you start fresh again.
But nowadays the idea of facing hard times and suffering is totally rejected.
This is not related to bubbles: actually I don't see any bubble created by the FED.
Stock prices are not very high, house prices are lower than in the past, bond prices are high but not mad (see how long japan has kept interest rates at 0,6%),gold was not in a bubble and now has lost 30%...
I'd say the opposite: FED is trying to keep everything at "normal" levels. And this is the problem.

"I'd say the opposite: FED is trying to keep everything at "normal" levels. And this is the problem"
people who believe that you can print money and believe it will insure a vibrant economy has been proven by history to be dead wrong. you cannot inflate your way to a healthy economy. it has never happened.


the problem is on the fiscal side. there is too much government regulation and government debt.
printing money leads to bubbles and non productive activities as people try to protect themselves against a depreciating currency.

the market is too high based upon economic activity. it is at this level because investors are anticipating inflation. even though gold is off its high it is up 4x in 10 years. if that is not a predictor of inflation what is?

 

[pfranz]

Quote from nillionaire:

Probably technical traders are buying the breakout above the trendline connecting the 2000 and 2007 tops - seems like it's not just a headfake and is a true breakout. Triple tops are supposed to be rare too.

I remember that in 2007 the Dow broke its previous high at 12000 and proceeded steadily and slowly (as is doing now). That fact was widely advertised.
It went on 2000 points more,then we know what happened.

 

[galvinlee888]

Quote from nillionaire:

Probably technical traders are buying the breakout above the trendline connecting the 2000 and 2007 tops - seems like it's not just a headfake and is a true breakout. Triple tops are supposed to be rare too.

Or short squeeze from ET community..

 

[SuperCruz]

General liquidity maybe? No-one knows 100% for sure. I feel the Fed’s QE practices certainly have something to do with it, but I suppose I could be wrong._

 

[kashirin]

Quote from TILT2:

The japanese are crazy. Do you have any fundamental or technical reason to support your view? Thanks.

there are enough already written
Google if you're interested

but in short yen is not reserve currency and their debt is much higher- so Japan can't emulate US

they will default or go through massive devaluation
ok, they already devalued 35% but from this levels maybe another 200%.

I don't know how it can be good for their economy but you can be sure this will create huge turmoil in all world markets

 

[brokerboy]

i am watching the JGB too but honestly its hard to be short right now US stocks. you don't get a day of weakness ever and everybody believes the fed will not stop printing for along time. you have people chasing yield but the amazing thing is how this buying view was not this strong 6 months & 300 s&p points ago. what changed besides breaking new highs? for the past 2 years markets went up and the sales growth predicted never came. you know the system is broken but it does not matter because money wants it to move up and economics does not matter until markets take it out of the central bankers hands like JGB yield moving up.

Quote from kashirin:

there are enough already written
Google if you're interested

but in short yen is not reserve currency and their debt is much higher- so Japan can't emulate US

they will default or go through massive devaluation
ok, they already devalued 35% but from this levels maybe another 200%.

I don't know how it can be good for their economy but you can be sure this will create huge turmoil in all world markets

 

[S2007S]

Gold and silver getting knocked down hard again tonight.

I find it funny how everyone was predicting 2000 and 5000 gold and now its falling faster than they can sell....why im saying this is because the reversal happened so unexpectedly that just like silver and gold the same thing can happen to equities. Just when you think they can keep moving higher and higher the drop comes.

 

[kashirin]

Quote from S2007S:

Gold and silver getting knocked down hard again tonight.

I find it funny how everyone was predicting 2000 and 5000 gold and now its falling faster than they can sell....why im saying this is because the reversal happened so unexpectedly that just like silver and gold the same thing can happen to equities. Just when you think they can keep moving higher and higher the drop comes.

gold is down for the same reason equities are up - because Fed wants it

why to be mad? we entered parabolic phase - it can't continue for long,although it can go very high
parabolic phase can bring 500% blow off top easily from the bottom
so S&P 2500 in a year is not out of question

whatever, daytrader should care less
just observe and profit every day