This Market Looks Like A Buying Panic

TBI ^ | 9-6-2012 | Julia La Roche

[blam]

This Market Looks Like A Buying Panic

Julia La Roche
Sep. 6, 2012, 11:51 AM

Stocks surged Thursday morning, with the S&P 500 hitting its highest level since 2008, following a slew of good jobs reports and the European Central Bank press conference led by Mario Draghi.

A trader, who prefers anonymity, offers a plausible explanation as to why the market might be rallying.

"We've had some data, which superficially appears to show some strength. There are a lot of shorts built into this market heading into ECB and they have been forced to cover on the back of ECB putting in place enough stuff which takes out systemic risk and what you get is an allocation to U.S. equities."

Or in simpler terms...

"There were a number of people who had a particularly negative outlook on the market. When they were wrong, as confirmed by better-than-expected economic data and an ECB which is taking action to help the eurozone economy, those people had to take off their negative bets as a result it created buying pressure in the market and that's why we are rallying."

So this might be panic buying, meaning those people who placed negative bets and those who aren't in the market rush to get in.

[proxy_user]

Up 200 today - down 200 tomorrow.

[qam1]

Pump phase in Pump & Dump

[ZX12R]

The market traditionally looks out 6 months forward. That will be a Romney presidency and a Republican sweep of Congress. This is pure reality.

My belief aside, I certainly hope you are correct.

[dfwgator]

The market traditionally looks out 6 months forward. That will be a Romney presidency and a Republican sweep of Congress. This is pure reality.

I hope you're right, but, never underestimate the stupidity of the American people.

[blam]

Doug Kass Isn't Impressed. He Plans On Shorting Stocks

[steve86]

The last buying panic occurred in 1982

Sure, the last one before the 176 that followed.

[steve86]

The market traditionally looks out 6 months forward.

Proven utterly false in the years since bubblenomics got underway.

[MrB]

QE3 IS going on, in stealth mode.

Folks, if you are in a 401k, do me a favor and find out if you have a “cash option” available.
If not, what is considered a “safe harbor” in your available choices?
And this “safe harbor”, does it happen to be heavy in US treasuries?

If so, they are backdoor nationalizing your 401k and making you prop up their debt.

[what's up]

Correct.

It amazes me how few people are able too see this.