"Alright, boys. We tanked the prices. Now, let's load up!"
Posted on 08/24/2015 6:45:45 AM PDT by Enlightened1
Buy limits are triggered in falling market, buying for short positions and closing option positions.
A very plausible scenario. Astute comment.
But what money?
The debt clock has been stalled at $ 18 trillion+ for months now with no changes and no one talks anymore about a debt ceiling
I’m afraid you are correct. We will see a dead cat for a few weeks before the fun really begins in September.
One thing I've learned is not to trade the stock market out of fear. I NEVER sell because of fear. If people are afraid of the future, they should keep all of their money in cash and bury it in the back yard somewhere.
Actually I was really referring to this:
Good question and one that crossed my mind this morning while out walking the dog.
Here is where my pea brain went on the question:
If the market reflects future events, then this drop is a needed correction to the Fed floating the idea of raising interest rates in September.
With the current debt load rates have to come up sometime, but no previous government has successfully recovered in this manner. This is just a flash of lightening before the big collapse in September, why? Because the Fed will raise interest rates in September anyway. In fact, this flash will settle down and events will seem normal. This will cause the Fed to raise rates, not by the .25 base points, but the idiots will raise rates by .5 or .75 base points in September.
http://www.freerepublic.com/focus/f-news/3328435/posts?page=66#66
Or, those who want to buy after the futures sales would do so just after the opening like that.
Could be both.
“Then after it crashes, they’ll blame the new president. Just like they always do.”
“And so will a whole of of brain dead, low info Americans. That’s how we got here in the first place.”
Well, GW Bush and the Rinos have to shoulder some, in fact, I blame Boner and Turtle just as much as the Dems
At open, SPX dividend yield exceeded the 10 year note yield.
"Alright, boys. We tanked the prices. Now, let's load up!"
The Fed can control the direction of the market through a form of margin buying via their Wall Street surrogates. Its inconceivable that they do not do this on a regular basis. Recall the Fed’s obsession with the market’s “wealth effect”. It wants to maintain the illusion of prosperity.
Not many people realize the debt has been frozen. Five gold stars to you for that one! But the debt pales in comparison to our $97 TRILLION in unfunded liabilities. That’s a liability to EACH taxpayer of $820,000.
Correct. There is no leadership from the “loyal opposition”.
Fed Dithers On Hike As Emerging Markets Throw Tantrum
BY ANDREA RIQUIER, INVESTOR’S BUSINESS DAILY
08/21/2015 05:56 PM ET
Emerging markets are taking the brunt of the sell-off, partly in anticipation of Fed “liftoff,” but commodities and debt from oil-dependent countries have also been hit hard. The iShares MSCI Emerging Markets ETF (ARCA:EEM) tumbled to a six-year low Friday. The Shanghai Composite sank 4.4% after a Chinese manufacturing index hit a 77-month low.
Read More At Investor’s Business Daily: http://news.investors.com/economy/082115-767585-does-market-turmoil-throw-september-liftoff-into-question.htm#ixzz3jk4JXQzG
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
Read More At Investor’s Business Daily: http://news.investors.com/economy/082115-767585-does-market-turmoil-throw-september-liftoff-into-question.htm#ixzz3jk41SZlE
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
Because the Fed will raise interest rates in September anyway.
*****************
I think that is off the table now. It could do irreparable damage to a fragile economy. Odds of a December hike are below 50% IMO. The Fed will look to stimulate, not deflate. Just my humble opinion.
They'll share blame, as they should. Republicans have their DC majority and the SC is majority-nominated by Republican presidents. Yet the beat goes on....uncontrolled debt, unconstitutional government, and financial moves which make the rich and disconnected more rich and more disconnected.
It's a no-brainer that only Trump has the passion, independence, and ability to get things done to turn this mess around. The others (including Cruz) should put it on "hold" for four years, and we can see who shows the best skills to help Trump turn the US around.
I always hear people saying the market is over sold, due a correction etc etc. But none of these people say what the DOW should be at this time. They certainly don’t present any financial info telling us what the DOW should be at. Just that its oversold and we’re all going to lose all of our money, and the world is going to end on September 23rd, and life as we know it is going to end... etc etc.
Right around 70% of trading in this modern day era is being done by HIGH SPEED COMPUTERIZED TRADING SYSTEMS.
They have the POWER to move the market directly and IMMEDIATELY.
In the past that was an aspect that was NOT possible.
Also would guess the FED supposedly still has a PLUNGE PROTECTION team that may be acting under these circumstances.
The DIGITAL era which was ushered in during the 90's is currently rolling "full tilt boogie."
Some are blaming Trump for the crash because he is talking about China, illegals and other “anti-growth policies”, and we haven’t even had an election yet!
That really comes as no surprise.
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