Quote from gms:
Then start grunting, snorting and oinking 'cause a poll of New Year's resolutions showed that one of the top 5 things average joe plans on doing is 'getting back into the stock market'.
Oiiiink!
In a way, this just completely puzzles me. For the first time in a long time, the US Economy, at least under the shiny Lacquer, is completely f*cked. Not only has Bush managed to create enormous war expenses, increase debt, cut of important trade agreements and increase generally anything negative : No, he has also done absolutely everything to "pump" up the market, to make it all look 'pretty' for the next election. How about all the changes in the SEC? Banning bullets, conversions etc - where do you think this came from? It's a pathetic attempt to keep prices up at any cost. People have no selling velocity, they can't short, because of uptick rule, they can't use married puts because that's considered "cheating" now - So what can you do if you dare to have a "bearish" view?
Of course, this suits the NYC investment banks only too well, since after all, those players only have one thing in their mind for their clients (and themselves): "Buy, hold and pray".
There is absolutely no substantial underlying reason for the current dow rally. Except for the fact that there is a myriad of European and Asian investment banks buying up American companies at "discount prices", because the $ is so low! Is this going to help US economy or maybe more like enslave it? I feel amazed seeing reports of Swiss and German banks buying huge shares of US companies at these prices, while the $ deflates - which drives prices up logically. And the gullible "common" US public sincerely believes the market is "going up" again, and reconsiders "going back into the stock market this year"?
You know, I might be completely wrong - The US market might grow into a huge (paper) bull in the next year - If I knew, I'd buy a million puts or calls now. I don't.
But one thing I am pretty sure of: The gullible public will always be the last to "enter" the market, getting in when price is high, and left holding the bag, while the astute ones already have their money somewhere else again. How about the "new year's resolution"? I bet 90% of those people who said that will only "remember" their resolution after a huge price surge or something like that.
God almighty, please let it rain more WizeTraders into the markets. We really need them.
Oiiink.
