Down goes the Dow

Last close only 26 points shy of 16k.

Still cruisin'.

As for gold, its value is driven by fear. Fear can be your ally, the key is to not let fear develop into panic.

There will always be fear. I don't have that much gold, but it is probably the single thing about which I don't worry, or even think. Or care, actually.

[quote]Maserati wrote:

Last close only 26 points shy of 16k.

Still cruisin'.

Yes.

We have cruised from 18,312 in May of 2015 to under 16,000 nine months later.

Markets are rallying on poor economic data in the hopes that central banks can again influence market direction and insure the success of buy-on-the-dip trade. The regime has changed however to sell-on-the-rally.

Igy

[quote]Ghost of Igloi wrote:

Markets are rallying on poor economic data in the hopes that central banks can again influence market direction and insure the success of buy-on-the-dip trade. The regime has changed however to sell-on-the-rally.

Igy

Actually the markets are flat today. Try to keep up.

Buddy pull your head out. Europe closed a little over an hour ago.

Igy

[quote]Ghost of Igloi wrote:

Buddy pull your head out. Europe closed a little over an hour ago.

Igy

You are as st*pid as defector/POOV/agip. Hint: check the title of the thread.

Jerry,

Fix yourself some mango salsa and have a beer it will chill the anger.

Igy

Hipsters,

It is not just energy and commodity companies in trouble. We now hear Kanye West is $53 million in debt and he suggests Mark Zuckerberg invest in his fashion business. Evidently West's $510 sweat pants aren't selling like hot cakes. Perhaps LNKD or CRM promotions or of course FB can save the day. Social media and the cool kids can provide all the sales one would ever need.

Lika ya...

Igy

Henry Paulson wrote:

Ok, that's just stupid.

Actually its not only true but very easy to follow.

The people claiming its not 2008 now were caught with their pants down in 2008. They did not warn anyone it was coming. So we should listen to them why?

Ghost of Igloi wrote:

Jerry,

Fix yourself some mango salsa and have a beer it will chill the anger.

Igy

Come on Ghost. You should be able to tell from the poor quality of the post that it's not me. It's the guy who likes to post under the names of those who expose his nonsense on a consistent basis. The try to keep up/ k5 defector guy. You know this clown. The guy who calls you a Jew hater if you don't go along with the destruction of the Palestinian people.

Mango Jerry,

My apologies, I had a feeling it was the troll.

Igy

Interesting news today, despite the markets being closed in the US:

1. Japan's economy is shrinking.

Apparently it is shrinking less than expected or the market expects some major stimulus package now. Because their stock index is up 7% today

2. China's exports and imports are both down around 10%

At the same time, their economy is still growing at 7% according to official statistics. In all seriousness, I doubt that domestic consumption/services increase make up for these numbers. I think China is in a recession.

Ghost of Igloi wrote:

Markets are rallying on poor economic data in the hopes that central banks can again influence market direction and insure the success of buy-on-the-dip trade. The regime has changed however to sell-on-the-rally.

Igy

Or has the regime changed to buy-on-the-dip AND sell-on-the-rally? And let's make it clear that if you have the right kind of account, you CAN trade this weekend. STOCK markets in the US are closed, but foreign markets are open (you can trade US stocks that are trading overseas), and you can indeed trade many commodities this weekend (and I did). If anyone has any doubts about this, here is the Globex quote list for gold from the CMEgroup:

I do not see any convincing evidence that the market support at 1800-1870 or resistance at 2100-2150 is going to break any time soon. I also do not see any evidence that leading indicators are doing anything but strengthening. So, it seems to me that if you don't need to be concerned about tax implications (that's futures only for me), what you do is trade the edges of the range.

Also, if you read the fine print of the economic news, there is euphoria from the markets in Japan and Europe. Draghi specifically has NOT said that the ECB is going to change policy, only that they might change it next month. So I'm inclined to think that the US markets are not going to be as optimistic tomorrow morning, though I do think it will be an up day. Since I had almost 74 points of open profits in full SP500 futures contracts, I decided to take the money instead of the risk. I also went short gold and treasury bonds (both of which I think are heavily overdone, now that they have the central bankers' attention).

coach d wrote:

there is euphoria from the markets in Japan and Europe.

Euphoria? Well yes the Japanese market is up 7% but I believe that's only because everyone expects their central bank to print ridiculous amounts of money. Of course the stock prices go up when that happens.

Regarding Europe, they're inching close to negative interest rates. The first step will be by getting rid off 500 EURO bills, the next one will be by prohibiting cash sales over 5000 EUR.

Hope you all followed my recent buy recommendation!

coach d,

I think the insitutions would like to get to 2100-2150. I don't see it. Way too many weak markets and sectors. I'm not sure which economic indicators you are tracking. A break of the 1812-1828 range and down from there most likely to me. The upper end of your range is possible if yield seeking speculation returns or corporate earnings accelerate but that would be a break from the trend established last spring.

Igy

Other Guy,

I am in the camp that central banks have lost the Midas touch. If true, it is indeed a game changer. The unwinding of yield seeking speculation will be long and painful. The reality that unconventional monetary policy created a global financial bubble will hit home soon enough. Buying on the dip is a fool's lottery ticket.

Igy

Big,

What did you buy and at what prices?

Igy

Nutella1,

Your view is the correct one, however continue to expect the financial media to spin the "slower growth is still growth" mantra. If you look to the drop in commodities and energy as linked to a China slowdown you can draw the conclusion.

Igy