Why is it so BULL today?
- Thread starter longsword
- Start date
The reason is known, it has little to do with the BS spewed by the financial media. It's just money supply and liquidity.
There are direct correlation between M3 infusions (mainly repos)and the equity & bond markets. That's why bond traders were very concerned when the Fed would stop releasing M3, for them that number is critical. Although you can compile the data by yourself.
Everything else is pure BS. Overlay a chart of Dow with M3 and you will see smth spark off during Reagan years.
Wherever all that liquidity goes, it has to go somewhere where it cannot cause such inflation that even CPI & PPI reports can't hide. The financial markets are the best thing, real estate is second because it will spur inflation increased rents & home prices (not to mention the mortgage boom & bust). So this market can't go down too much, although I'm not too sure whether the Wall Street media machine can pull off a roaring bull.
This market is not going down besides the occasional hiccups and rapid selling by hedgies. It's can't go down because of PPT, perception and dollar devaluation. Take a look at the indices and top performing sectors and then adjust them for the value lost by US$ in the last 5 years. Then try to think why should market go down when it barely went anywhere.
Last thing, the financial sector has become a big part of today's equity market and the indices. That is the sector that first gets access to the money supply infusions and capitalizes on it at the expense of those who get it at the end or none at all. These stocks aren't going down and their sector is only growing & growing.
There are direct correlation between M3 infusions (mainly repos)and the equity & bond markets. That's why bond traders were very concerned when the Fed would stop releasing M3, for them that number is critical. Although you can compile the data by yourself.
Everything else is pure BS. Overlay a chart of Dow with M3 and you will see smth spark off during Reagan years.
Wherever all that liquidity goes, it has to go somewhere where it cannot cause such inflation that even CPI & PPI reports can't hide. The financial markets are the best thing, real estate is second because it will spur inflation increased rents & home prices (not to mention the mortgage boom & bust). So this market can't go down too much, although I'm not too sure whether the Wall Street media machine can pull off a roaring bull.
This market is not going down besides the occasional hiccups and rapid selling by hedgies. It's can't go down because of PPT, perception and dollar devaluation. Take a look at the indices and top performing sectors and then adjust them for the value lost by US$ in the last 5 years. Then try to think why should market go down when it barely went anywhere.
Last thing, the financial sector has become a big part of today's equity market and the indices. That is the sector that first gets access to the money supply infusions and capitalizes on it at the expense of those who get it at the end or none at all. These stocks aren't going down and their sector is only growing & growing.
Today was a fairly normal trend day, +100 in the DOW, but nothing special.
200 pts would have been more bullish.
However the DOW is approaching its all time high, if it can make
it past that, it would really be something to be bullish about.
200 pts would have been more bullish.
However the DOW is approaching its all time high, if it can make
it past that, it would really be something to be bullish about.
this 100 percent options related.
My call from another thread...........
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5Pillars
Registered: May 2006
Posts: 724
09-12-06 01:50 PM
No....the big boys have to clean up there buried equities positions.....market has to go up to do that. Then they can rotate and sleep at night again....LOL!
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Look at the very flat returns from many of the mutual funds for the year.............they are not going to just hang on to massive LONG equities positions at a loss.....they will find a way to dump them off to the next guy.
SPX 1450 by the end of the year.
by first cycle I refer to once a trader enters a position either long or short that once the position comes into the money that the trader take those profits once the sentiment changes or exits the trade if the stock price matches the original order..
an example would be overall sentiment long on the hour and day..the 15min is less long and the 5min shows a stall or pullback the trader would exit the trade on the 5min or follow the 1min for a tighter exit as the one min and 5min are the heartbeat of the stock ...this is in reference to day trading..and then possible look to short the stock via scalling into his or her desired position.
also we do not necessarily worry about our position trades if they run a little long or short as there usually is a correction the following week of expiry long or short depending on what the stock did..
I personally believe we will see a min of 10percent adjustment in many of the nyse and nasdaq stocks before month end..
so in a lot of cases we will write calls and puts for an initial position and receive the premium for the trouble...
sept gm call 3250 27,50 and 30 nvda call, oct 20 rmbs call, oct 40 and 45aeos call..we right puts on stocks that have fallen hard like rmbs,palm,brcm, etc..
good luck with your trades.
w
LOL...."Who cares" - hedge them, don't worry about direction. I know we all try to figure out why sometimes, but then your personal "opinions" start to creep into your trading plan and executions are made with heart not mind...and, we know how bad having "opinions" can be....
(Kinda bored today actually, LOL).....
(Kinda bored today actually, LOL).....
LOL And tired since I only got 3 hours sleep. 