'Scary' correction is coming: Analyst

cnbc ^ | 8-27-2014

[steve86]

You’re ill-informed and delusional if you think the market is where it is because of “earnings”.

[notdownwidems]

Ok what I think is appropriate is cashing in this entire account ($40k or so), and buying silver, and BURYING IT SOMEWHERE...what are you going to do, if you don’t mind me asking?

[krunkygirl]

Bkmk

[Wyatt's Torch]

Technical resistance in a 20 year trading range? For real?

Okay here is what she is talking about;

20 years is WAY to long of a horizon for decent technical analysis.

One of the things you want to look at is recent trends and support/resistance levels. here is the 10 year chart with lines drawn since the bottom in March 2009. From this it seems there is significant support a little above 16,000.

We can move in even more recently to see other support/resistance levels. Here is the 2 year chart that shows plenty of running room until we hit resistance over 18,000

[Wyatt's Torch]

You mean these earnings that are near record highs?

[grania]

Of course your brokerage account cash could evaporate, too

How would that happen?

[E. Pluribus Unum]

Ever hear of Jon Corzine and MF Global?

[grania]

I realize people have lost everything because they trusted brokers or they were in a fund that went defunct. I thought the cash portion of my individual brokerage account is about as safe as it gets.

[E. Pluribus Unum]

I thought the cash portion of my individual brokerage account is about as safe as it gets.

It's a money market fund, right?

It's not FDIC insured, not that FDIC will be able to cover very much once the "bank holidays" start.

[pgkdan]

I’ve been reading articles like this on a weekly basis since 2009.

[steve86]

You mean these earnings that are near record highs?

You believe that record high business conditions are responsible for that? Really? Then I recommend you go full Democrat in your voting preferences. OTOH, if you accept that an artificial and unsustainable la-la business environment created by central bank intervention (worldwide) is responsible, drop the argument and admit it's a fed bubble. Earnings aside, profits are not driving this market, free money to speculate is.

[Wyatt's Torch]

Ahhh the typical “then go vote democrat” retort. LMFAO.

[steve86]

Corporate buybacks another big reason for the lift in stocks. Not sustainable.

[grania]

It's a money market fund, right?

It is. It isn't very much money.

You make a good point. If the brokerage firms wanted our money to be safe, they'd have the option of holding it in an FDIC insured bank account. Tomorrow I'm going to try to find out if they have that option.

[E. Pluribus Unum]

There is no good answer. Short-term treasury bonds seem the best, but most brokerages only have treasury funds, not the option of actually owning the bonds themselves.

[Wyatt's Torch]

Over the long run buy backs are of little value to the market and shareholders. They are an enormous waste of capital.

[SunkenCiv]

• People will still be running around predicting all of the following:
  • collapse of the US dollar
  • China, Russia, Iran, et al will establish a different reserve currency, leading to (you guessed it) the collapse of the US dollar
  • Yellowstone caldera will blow, destroying half/all the US and part/much/most/all of the world
  • that eruption will lead to the collapse of the US dollar, or would have, had it not already collapsed twice.
  • the US deficit, having risen from the current $15 trillion to $45 trillion in 2034 will lead to, well, you get the idea.

    ---

*

[GOPJ]

Foreign stocks?

[Junk Silver]

Peter Schiff invests a lot of his clients money in foreign stocks.

I recently heard him say something along the lines that he looks for stocks in countries that have sounder currency, a less restrictive regulatory environment and more liberty than is found in the USA.

I found that to be a depressing statement. The USA was once the world leader in all of those things, which is why we were once the global economic powerhouse.

[SunkenCiv]

This topic was posted 8/27/2014. Thanks Citizen Zed.