Posted on 08/09/2011 1:23:01 PM PDT by ilovesarah2012
Stocks saw its biggest one-day gain since May 2010 Tuesday after a wild session as investors snapped up beaten-down stocks and following a Fed statement to keep interest rates near zero for at least two more years.
(Excerpt) Read more at cnbc.com ...
If you see a machine that is oscillating as wildly as the Dow is, step away as far as you can because it is about to self destruct...
The Fed just said that they’re going to pursue ZIRP for an extended period of time, thereby signalling that money is going to remain cheap and leverage will be easy to come by.
The markets were sold off so hard on Monday that over 80% of the stocks listed were trading below their 200 day moving average, and the VIX was over 40.
I bought with both fists. Depending on what the overnight action brings, I might be buying more tomorrow.
If you take all your money out, the only place is the mattress...or the store. No one is giving up their cash yet.
Banks are going to have to backtrack on some of their fees.
PPT in action?
“I don’t get it.”
Reality sinking in? The temper tantrum by investors is over?
Just guessing. But, could it be that the plunge was investors being disgusted over the debt deal, and then further disgust over the downgrade. So, after the smoke clears, you have reality setting in:
There are bargains to be had.
And where are you going to put your money? T-Bills? Really? Europe? Asia? How much gold can you buy? For the bigger investors, all gold is not an option. Back into the market.
three dissenters on the fed board to QE3; including inflation hawks Fisher and Plosser.
Probably the small fish panicked yesterday and the big institutions swept in for some bargains today. The question is can it be sustained. In the near term, I think not. I was hoping for an opportunity to sell some things on a bounce, got it today but didn’t sell in time. Will see if market is stable tomorrow, unless it gaps down dramatically in the morning, I will make my move.
There’s no need. Over 60% of the volume on the markets is the result of algo’s and HFT. The algo boxes kicked into gear this afternoon after the Fed announcement.
With rates crushed as low as they are, where is money going to go? You really have only three choices:
1. Buy US stocks.
2. Buy US commodities.
3. Go offshore.
IMO, those choices are ordered according to risk, and the bigger systemic risk now is competitive currency devaluations.
I think those NYSE trading floor ffulks with the funny jackets ought'a stop playing wid demsselves an getta life!
That my friend, was the PPT in action.
LLS
Anticipation of the next crack hit dealer Ben is pulling from his bag.
Paper money on way.
An the winner is......
The guys in the funny jackets, aka “specialists,” are the last of a dying breed.
Most of the volume and the overwhelming majority of shares are now traded by computer, which leads to such things as last May’s “flash crash.”
Most of the volume on the NYSE isn’t initiated by human decision. Over 60% of the volume is the result of fully computerized buy/trade/sell programs.
Not really being financially savvy, I had to look it up:
The Working Group on Financial Markets (also, President’s Working Group on Financial Markets, the Working Group, and colloquially the Plunge Protection Team) was created by Executive Order 12631,[1] signed on March 18, 1988 by United States President Ronald Reagan.
The Group was established explicitly in response to events in the financial markets surrounding October 19, 1987 (”Black Monday”) to give recommendations for legislative and private sector solutions for “enhancing the integrity, efficiency, orderliness, and competitiveness of [United States] financial markets and maintaining investor confidence”.[1]
As established by Executive Order 12631, the Working Group consists of:
The Secretary of the Treasury, or his designee (as Chairman of the Working Group);
The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
The Chairman of the Securities and Exchange Commission, or his designee; and
The Chairman of the Commodity Futures Trading Commission, or his designee.
http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets
Thanks. I learned something and was surprised it was established by Reagan by Executive Order.
I own a couple of puts on the vix. We’ll see where it goes.
I believe the drop in oil prices was the main reason the rebound occurred.
And like some have said, where else will people put their money? I wonder if there is a gold bubble now. Not knowing a lot about gold, I am just curious.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.