agip,
I see the fundamentals deteriorating and it is more than energy or China. Biotechs were under stress today, I covered shorts I purchase Friday and Monday.
Here is a piece on the high yield market. High yield widening spreads is an early indicator of stress in the economy.
Igy
agip,
Part of biotechs weakness today was Ilumnia (ILMN) poor sales of its genetic sequencing products in Europe. PMI coming out of Germany was weak as well. The IMF has downgraded its global economic outlook. Of course the investment community calls for more QE. These programs are hurting the respective economies and I am afraid the payback will be in spades.
Igy
I'll give you a dollar if you stop talking about biotechs
agip,
Not necessary, I made enough covering my shorts.
Igy
Cheater Mike Rossi: "There's obviously an ulterior motive..wonder what it could be? #hatersgonahate"So yes.
Hatters? wrote:
Ghost of Igloi wrote:POTO,
One out of three, how so? I certainly do not want to convert you or anyone else to my views, and for the haters see the attached:
https://www.youtube.com/watch?v=s2YHHIOocxsIgy
"haters"??? Are you in 6th grade?
Rossi,
I am proud to say I have finished every marathon I started, even walking just to finish. I can't imagine why you would cheat, since you would know.
Igy
Despite what you've heard here, it appears buying on the dip has been a money making strategy of late.
POTO,
Agreed if you sell the rips.
Igy
43 days since the August 25 lows and we are up 6.8% (Sp500) from that point..
Still 6.6% down from the highs
isn't there some rule the technical people use that when you recover half of the losses you are at a critical point?
at some point the bears get caught in a trap - just waiting for new lows - this happens after every correction - some people wait for years.
emerging markets up 12% in 7 trading days (VWO)
this is the problem with trying to time markets - you get left in the dust
agip,
The flip side of that is money coming into the market only to move lower. The deterioration in market internals is not over. To think differently is wrong in my opinion.
Igy
agip,
More stocks continue to hit 52 week lows than 52 week highs. The institutions are churning the market, moving from your "fav" biotech to transports and energy. We will see how long that lasts. The trend has been to move from one sector to another in a falling pattern. A year ago that rotation was in an upward pattern. Of course I can be wrong, but that is my observation.
Igy
Ghost of Igloi wrote:
agip,
More stocks continue to hit 52 week lows than 52 week highs. The institutions are churning the market, moving from your "fav" biotech to transports and energy. We will see how long that lasts. The trend has been to move from one sector to another in a falling pattern. A year ago that rotation was in an upward pattern. Of course I can be wrong, but that is my observation.
Igy
well since october began the advance decline line has gone quite positive so the question is what the longer term trend will be.
Right now the advance decline line is as about as positive as it gets. But that's this week. you can go to stockcharts.com and chart $nyad.
Not srue how to look up 52 week highs vs. lows over time.
agip,
One can look at momentum indicators, stock charts or any other non-fundamental reason to justify the market moves. In the end the direction of the market will be determined by stock valuations relative to corporate earnings, not Federal Reserve policy, non-GAAP earnings, stock buy backs or any other transitory factors. Either corporate earnings continue to grow to support stock prices or they do not. For anyone to believe differently ignores the history of the market. Nothing that has happened the last two months, including the big down days and subsequent rebounds, changes that opinion.
Igy
Ghost of Igloi wrote:
agip,
One can look at momentum indicators, stock charts or any other non-fundamental reason to justify the market moves. In the end the direction of the market will be determined by stock valuations relative to corporate earnings, not Federal Reserve policy, non-GAAP earnings, stock buy backs or any other transitory factors. Either corporate earnings continue to grow to support stock prices or they do not. For anyone to believe differently ignores the history of the market. Nothing that has happened the last two months, including the big down days and subsequent rebounds, changes that opinion.
Igy
fair 'nuff - you brought up technicals first tho with talk of the 52 week high/low stat - I was just responding.
anyway, I read some paper at some point that, as I remember it, showed that corporate earnings and stock prices are not correlated until you get out to 3+ years.
or maybe it was GDP growth and stock prices aren't correlated. Can't remember.
Ghost of Igloi wrote:
https://www.youtube.com/watch?v=s2YHHIOocxs
OK, so you are in 6th grade.
There should really be some minimum age/maturity requirement to post here.
agip,
I hope you enjoyed the YouTube video I posted. Evidently someone didn't like it.
Anyway, the reason I noted the high/lows is the market is open to interpretation, and just because it is going up or down that explanation remains incomplete. At this time there is more factors pointing to weak fundamentals than strong fundamentals. Of course one can theorize that the market is cheaper now and valuation are attractive. I think that interpretation is far from correct.
Igy
Hatter,
Article required for your middle school matriculation:
Igy
Hatters,
More required reading, blue book exam Monday after homeroom:
Igy
Hatters,
For you or anyone else who thinks everything is "awesome":
Igy