What's behind the bounce
Why did investors get a sudden burst of optimism Wednesday?
P.T. Barnum said it best, "a sucker is born every minute." I am neither a Libtard, Demonut or whatever. This is business not politics. All I ask is for a FAIR return on my investments. As it stands now the Market is being manipulated and what happened today was to "reel in the suckers."
When the market went down the tubes in '08-'09 I lost enough that I could have purchased 2 Ferraris and paid cash with spare money left over. Hell the market fell over 1000 points in less than 30 minutes. But because there was less than 1 hour left in the trading day, trading was not suspended. A computer problem was blamed, yeah right!
But my buddy Warren has helped out by saying that he pays fewer taxes than his poor secretary and all should pay more. We also have Barney watching everything with banking and finance. Give me a break!
I am to the point that I may pull everything out of the market and bury in mason jars. Will be safer and definitely more protected!
Balls bounce. So do dead cats. If you don't have a PCRA 401k, you are screwed. If you don't have a 401k with a stable value fund (like Boeing), you are screwed.
My favorite play for the bounces? I hold four long positions in my portfolio. I've marked on the calendar their div dates. When the div comes, if they are above their per-share price I paid, I take them off of dividend reinvest. If they are below their per-share price I paid, I leave them on dividend reinvest.
Even a blind pig can do that, even if they are not wearing lipstick.
But, yes, the big question still remains. Every day. Who are you long on?
I recommend Smith & Wesson, B a$$ Pro Shops, and Cabellas.
(I had to write Ba$$ that way because the dirty word computer software deleted it. I'm okay with that. I don't want to post dirty words.)
Uh, Jimmy, did you forget that Wednesday (today) is the day after the Wisconsin election beat down of unions and liberal democrats? Americans became optimistic that Obummer will be gone in January 2013 and that normal Americans are once again paying attention to the people who drove us over this cliff for the past 50 years.
Another day. More fiat dollars where they don't belong. A curious absence of relevant news this morning. In several locations you can read Wall Street's misinterpretation of Fed indications that more QE is ahead. The reverse is historic... proclaiming some life in this dead economy and recalling some of the fiat dollars in an attempt to bolster the rest. Collapse generally follows.
One poster here suggested a 7-day sitting period on stock purchases. I also think that's a very good idea. Hike the Bank Rate to 20% again (1980-81) and we filter the credit purchases out of the mix. A tax on trades? A single national tax on all purchases (including financial transactions) would help out quite a bit. Notably there still hasn't been any focus on revenue consistency. Also noteworthy is the Silence of the Congress. We're relocating our fleets toward China, seeing new unrest in the Middle East and significant unrest on Main Street. At some point, those who proclaimed that the welfare of the nation shouldn't rest in the hands of the people, need to leave and let adults handle the mess they've made and havoc caused in result. Time for change, but not falling off the cliff.
Volatility is one thing, but not great when driven by a small percent of the players, because that tide effects all boats' levels.
TODAY : 120 point in the DOW on 17 million shares
Don't discount the political winds.
1) The upcoming Supreme Court decision on Obamacare. This week there were numerous democrats commenting on what they'll do "if" the individual mandate were to be ruled unconstitutional (which means they have been tipped off that the Supreme Court will rule it is unconstitutional). Investors are plugging into their investment calculators the effect of lifting that burden from business.
2. Scott Walker's win and the upcoming November elections. The possibility of getting rid of Obama and his administration's assault on businesses cannot be understated.
Hey, what just happened there was pretty cool. I won't explain, but I have a lot of respect for the umpires at MSN. I guess they must be working 24/7. That's awful. Can't they go home and play catch with their kids or something?
What happened to the Emotioncons?
After years of studying the U.S. equity markets, winning on some and losing on others, it has been made clear by good old Ben when in doubt PRINT MONEY!
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