Posted on 10/06/2020 7:03:48 PM PDT by SteveH
that is a 5% swing during day which you suggest is intentional. interesting.
so maybe a stop should be at 10% or 15%, although i suppose something mimicking a bigger stop sweep might still plausibly happen... (??)
“(accurate and fair??)”
i don’t think so ... supposedly the market trend represents a collective belief in the viability of future economic growth (or contraction), but then there’s the whole herd principle of panic vs greed of individual and corporate traders, and program trading which amplifies the hell out of market trends ...
my personal gut feeling is that the market will skyrocket when Trump is elected and will crash bigly if biden is elected, the latter pointing to a major depression as well as being a major factor in precipitating said depression ...
one counterargument might be that there is no alternative safe harbor to the us stock market. europe comes in at a somewhat distant second. the china market is simply too corrupt to compete effectively. so a lot of money supply sloshing around in the world ends up in the us stock market by default. the actual stock prices are in part a measure of some form of international investment money velocity as much as anything else. biden might depress the velocity component but it will take him a while to degrade the us open market to the level of europe (more so to the level of china).
(accurate and fair??)
anyone have a good stock pick for now? you can pm me if you like.
btw, thanks much to the AMD fans on FR who were recommending buying AMD months ago.
“(accurate and fair??)”
absolutely: the other MAJOR market factor is the amount of liquidity sloshing around that is unable or unwilling to be invested in the growth of physical production assets, in which case it seeks paper assets like capital stock, bonds, and/or dividend-producing paper, thereby putting upwards pressure on said paper asset prices ... that’s why so many claim that the REAL driving factor in market prices is the amount of said “excess” cash, which results from massive government deficit spending (bonds bought by the Fed) and low Federal reserve lending rates to banks and such ...
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