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Bulls Finally Get A Mega-Win: Here's What You Need To Know (Dow up 274)
The Business Insider ^ | 7-7-2010 | Joe Weisenthal

Posted on 07/07/2010 1:10:28 PM PDT by blam

Bulls Finally Get A Mega-Win: Here's What You Need To Know

Joe Weisenthal
Jul. 7, 2010, 4:00 PM

Finally! The bulls get one.

But first, the scoreboard:

Dow: +270
NASDAQ: +64
S&P 500: +32

And now, the top stories:

* In terms of "news" today was perhaps one of the most uneventful days in memory. There were no ground-moving economic reports. There was nothing too notable out of China, except a few reports about a property bubble collapse, but even that may be old hat. No European leader said anything stupid, either. Don't miss: 17 staggering facts about China's Three Gorges Dam >

* Europe did drib out some guidelines regarding the stress tests, but they were beyond empty, in terms of details. These are going to be a non-event, in all likelihood, when the actual results are announced next month.

* There was some chatter about weak earnings guidance from Family Dollar but, um, snooze.

* In addition to stocks, pretty much all the key commodities were up. Gold's rise was pretty modest, especially given its recent declines. The dollar continued its fall.

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; markets; recovery; stocks
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To: blam

Told everyone to buy the Euro a few weeks back. Zoom, zoom.


21 posted on 07/07/2010 1:41:09 PM PDT by montag813 (http://www.facebook.com/StandwithArizona)
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To: equalitybeforethelaw
If you believe in V bottoms jump in. Otherwise, you may want to wait and see some recognizable bottom formation before jumping in.
And if you think that technical analysis [sic] is a load of BS, with less validity than reading tea leaves ... ?
22 posted on 07/07/2010 1:41:32 PM PDT by jdege
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To: blam
Market Rallies as Retail Sales 'Purportedly' Rise at Fastest Pace in 4 Years; Signs Suggest this Oversold Rally will Soon be Dead
23 posted on 07/07/2010 1:45:59 PM PDT by blam
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To: blam
Intel earnings are right around the corner. This is the reason for the pop IMO. Technology will have good numbers.

A few other companies as well are poised to announce good results (remember these numbers will, of course, be way higher than last year...not sure what the sentiment going forward will be).

24 posted on 07/07/2010 1:46:10 PM PDT by Siena Dreaming
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To: blam

The market was hugely oversold, that’s all. Sooner or later, there was going to be some computer-generated buying. When as many stocks are below their 50 and 200 days SMA’s as we have here, the trading models kick in and buy - and they might be long for all of 3 to 20 days, then they’ll sell.

Bull markets don’t go straight up, bear markets don’t go straight down.

The thing that I’ve seen in the last month that is significant for investors, tho, is that this is NOT a “stock picker’s market.” The correlation across stocks is unusually high - ie, when the SP500 goes up or down, most (and sometimes nearly all) of the stocks in the SP500 index move in the direction of the index. In past years, the level of correlation was not as high as we’re now seeing, which is part of what is leading to these “up 270, down 270” type of days. In the past, it was rarer to see a “90%” day, when 90% of the stocks would go in the same direction as the index. Recently, we’ve seen selloffs where 499 out of 500 stocks were down in one day. Very unusual breadth. Today we see (I think) 490 up out of 500. Again, unusual.

For a trader, these can be good days - if you keep your head on straight, are nimble and are ready to give up any and all convictions and pre-conceived notions about what should work. When I have a few days to set up and am trading (as I was today), I just ignore everything other than price and volume and things like the TICK, TRIN and VIX. Do I care which way the market went? No. Do I care why? No. Do I think this is a productive use of my time? In that I made money, yes.

Do I think the type of action we’re seeing in the markets is good for confidence in our markets or our country? Nope. Not by a long damn shot.


25 posted on 07/07/2010 1:50:38 PM PDT by NVDave
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To: Hexenhammer

suckers pump


26 posted on 07/07/2010 1:53:06 PM PDT by paul51 (11 September 2001 - Never forget)
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To: ModelBreaker
There was no reason in the news, the fundamentals or otherwise for a 3% rise in the market.

Rarely is there any real connection between economic reality and daily market movements. Markets move only because of decisions of gamblers as to what is the best bet, no different than a casino or racetrack. Large bettors skew the prices just as they do with sports betting. After market moves, the explanations are usually comical, using the identical reasons for both up and down markets. The "market media" would compare favorably to any tout sheet.

I'm not against gambling, but I find it humorous that people consider gambling in the stock markets "investing". You're not investing in anything except a wager. Except for IPOs, all of the money you pay for a stock goes to another gambler or a bookie/broker.

Trying to understand anything about the economy by looking at the equity markets is futile.

27 posted on 07/07/2010 1:55:55 PM PDT by Prokopton
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To: blam
I've been sticking with the investment strategy I began last year: buying ammunition.

I figure I'm up about 20% from the start.

28 posted on 07/07/2010 1:58:34 PM PDT by TonyInOhio ( Live free or die: Death is not the worst of evils.)
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To: blam

maybe a couple of IPO’s on companies that make VAT calculation and collection software?


29 posted on 07/07/2010 2:06:46 PM PDT by Buckeye McFrog
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To: Siena Dreaming
"Intel earnings are right around the corner. This is the reason for the pop IMO. Technology will have good numbers."

Semiconductors Turn Profitable, Stocks Get Cheaper

I remember in my 30+ years of making chips that it was said that we (chips/semis) were the first down in a bad economy but the first up in an improving one.

Is this what we're seeing?

30 posted on 07/07/2010 2:50:28 PM PDT by blam
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To: blam
Semis and steel IMO are good indicators both going down and up.

This could be a good week for both going into INTC earnings.

31 posted on 07/07/2010 3:01:42 PM PDT by Siena Dreaming
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To: STD

That’s exactly what I was hoping for when I perused the headline. “LeBron COMES TO CHICAGO!!!!”

Of course I am also hoping that my mutual funds recover to the point where I can have a retirement without eating cat food or applying for welfare.


32 posted on 07/07/2010 3:03:58 PM PDT by neocon1984
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To: STD

That’s exactly what I was hoping for when I perused the headline. “LeBron COMES TO CHICAGO!!!!”

Of course I am also hoping that my mutual funds recover to the point where I can have a retirement without eating cat food or applying for welfare.


33 posted on 07/07/2010 3:04:07 PM PDT by neocon1984
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To: NVDave

You are correct, it was oversold. Nothing else. After yesterdays mediocre bounce futures were way down yesterday afternoon. I bought a couple of contracts and sold them first thing this morning counting on an oversold bounce. (I had a test at the doc’s office and knew I would be gone most of the day).
There is no real news this week either so that gives it another reason to bounce.


34 posted on 07/07/2010 3:22:53 PM PDT by sheana
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To: Prokopton
I'm not against gambling, but I find it humorous that people consider gambling in the stock markets "investing".

So what do you consider investing?

How about a safe investment?

How about one that yields 8%?

Please.

35 posted on 07/07/2010 5:10:32 PM PDT by Doe Eyes
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