Jump to content

What a day!


moore_capital54
 Share

Recommended Posts

And all because Germany and France now have a "plan".  But they can't share the details until the end of the month....  Just like every other rumor lately I think it's causing short-term buying and will reverse as soon as the market realizes there really isn't a plan....at least not one that actually solves the problems.

Link to comment
Share on other sites

And all because Germany and France now have a "plan".  But they can't share the details until the end of the month....  Just like every other rumor lately I think it's causing short-term buying and will reverse as soon as the market realizes there really isn't a plan....at least not one that actually solves the problems.

 

Come on man let us enjoy the rally for a bit lol.

Link to comment
Share on other sites

This is not a dead cat bounce it is a serious net buying day. Market participants are jumping back in. And this contradicts a lot of what the doom/gloom sayers have been preaching. Some may try to time the market but this is why I continuously recommend the book: Extraordinary Popular Delusions and the Madness of Crowds. Human beings have short-term memories, and the stock market is a monopoly on capital flows. Once people realize the world isn't ending, and they have about 2 years worth of low interest rates, you will see serious utilizing of capital and growth return. Markets have been pricing worst case scenario, imagine they begin to price growth?

Link to comment
Share on other sites

Well we agree that is a great book Moore :)  Funny how we get different things from it.  A few noisy bears aside, I would say the crowds are still as bullish as they've ever been. 

 

If we could see US equity prices rallying without a corresponding drop in the USD, then I'd believe it's serious buying. 

Link to comment
Share on other sites

This is not a dead cat bounce it is a serious net buying day. Market participants are jumping back in. And this contradicts a lot of what the doom/gloom sayers have been preaching. Some may try to time the market but this is why I continuously recommend the book: Extraordinary Popular Delusions and the Madness of Crowds. Human beings have short-term memories, and the stock market is a monopoly on capital flows. Once people realize the world isn't ending, and they have about 2 years worth of low interest rates, you will see serious utilizing of capital and growth return. Markets have been pricing worst case scenario, imagine they begin to price growth?

 

Seriously, you can conclude all this based on a few hours of trading today? With respect, it sounds like something market timers like to do.

Link to comment
Share on other sites

I don't think he was calling a market bottom here.  There is economic data that is coming out which points to predictions being too low, GDP growth was recently upgraded.  Buffett has said he doesn't see a recession either, he has excellent foresight into the economy given his diverse businesses and in-depth knowledge of their operations.

 

I agree that this could be real buying, but who knows if it will prove to be a bottom.  I hope it isn't a bottom, two companies I'd love to own were just close to getting cheap enough for me!

Link to comment
Share on other sites

I have to agree with those who have posted saying who knows what this all is.  I mean come on.  A few days ago everyone was crying about how the world is ending and now this is the start of the next bull?  I would love for this to be dawn in America again as much as the next guy, but I don't think you can tell from today. 

Link to comment
Share on other sites

OEC most of what I "concluded" is part of my market knowledge and has little to do with today's action. What today's action signifies to me, is that there appear to be serious net flows back into a market that is extremely oversold and was only a few days ago priced for a prolonged period of no growth.

Link to comment
Share on other sites

I've put a hold on "Extraordinary Popular Delusions and the Madness of Crowds" at the public library. Thanks for the suggestion.

 

I read an edited version of this book that was also in the same collection as an edited version of Confusion de Confusiones by Joseph de la Vega.

 

Apparently, the Amsterdam stock exchange was a hotbed of options trading back in the day (I'm talking 1600s).  The book also talks about how people would spread rumors to benefit a trade they were putting on.  Also talks about how traders are either bulls or bears. Talks about short selling.  And as I recall, there were only like two or three issues trading on that exchange.

 

It's pretty interesting to see how little things have changed.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...