Posted on 12/26/2018 12:19:40 PM PST by Candor7
Stocks rose sharply in volatile trading on Wednesday as surges in retail and energy shares helped Wall Street regain the steep losses suffered in the previous session.
The Dow Jones Industrial Average traded 657 points higher as of 3:05 p.m. ET, while the S&P 500 gained 3.05 percent. The Nasdaq Composite outperformed, rising 3.96 percent. Both the S&P 500 and Nasdaq were on track for their biggest one-day gains since Aug. 26, 2015 and erased Monday's losses. The Dow also recovered all of its losses from Monday.
(Excerpt) Read more at cnbc.com ...
Cracked a thousand ... wonderful day.
The one day wonder rally is a prerequisite because it cleans out shorts (who cover), gets the little guy (and black boxes) all bulled up, and, like you imply, gets them complacent (it’s ok to go back in the water). But the sharks are still there.
Selling US Govt Bonds in large quantities should by itself cause upward pressure on interest rates.
Btw, do you have an idea where we stand now in the process of dumping the bonds and MBS’s from the $4 trillion high point? E.g. how much left to buy back at the $50B per month rate?
$4 trillion dumped at $50B per month would be 80 months.
One would think when we’ve finished “quantitative tightening” markets would get buoyant.
How many cats were in her car?
AHA! Thanks for the correction.
Why not just run Jimmy Carter again, he’s not much older than Bernie.
“Best to just invest over decades and leave it alone.”
Agreed. We do not plan on touching our IRA until forced at age 70. In this last year the IRA lost 11% of it’s value. Our strategy is as you say, “leave it alone”. It will recover.
But those depending on their investments as a source of income have got to be near a nervous breakdown, and panicky people do stupid things.
People depending on investments for income should not have a large portion of it in stocks. There are free asset allocation calculators all over the internet that tell you the ideal percentage you should have in stocks in a given situation. Generally speaking, the older and closer to retirement you are, the more you should be moving out of pure stocks and the more you should be moving into balanced and fixed funds. You will likely get a lower return but you will also be insulated against big losses.
Where are all the a$$holes who were predicting a crash?
It goes up, and it goes down. Much breath is wasted pretending to explain it, and in making solemn pronouncements about the future of the world.
Heading back down...has dropped almost 500 points after yesterday’s climb.
Going down 600+ up 1000+ down 500 is not normal nor sustainable.
I don’t know about a crash, but market is acting like end of bull market. And I don’t think I am an a$$hole for thinking this.
Makes sense, overall downward trend in the market, occasional upticks like yesterday are to be expected. Market volume is at an all-time-high, shouldn’t be hugely surprising we had the single largest one-day gain of all time.
Sell high, buy low - we haven’t reached the low yet. Not pessimism, just sensibility.
And anyone who thinks stock market = economy has as much fiscal sense as that Socialist from New York.
I know. I have been there.
I don’t think market volume yesterday was at an all time high...During the day, I heard reports of light volume...But that was before the afternoon final surge. Lots of shorts being covered then.
https://www.nasdaq.com/markets/nasdaq-composite/2013-highest-lowest-volume
http://www.wsj.com/mdc/public/page/2_3021-tradingdiary2.html
What makes this really interesting is that the FED has to engage in a difficult balancing act. If they are holding 30-year mortgages paying below 3.5% and current rates have risen close to the 5% level within the last few months, the FED loses a lot of money every time they sell off $50 billion of these bonds (i.e., buyers of a 3.5% mortgage are going to pay a discounted price when the prevailing rate for new mortgages is 5%).
The same goes for U.S. Treasury bonds, where the yield on a 10-year note has risen from below 1.6% a few years ago to above 3% in recent months.
This is the general behavior before a big ride downhill.
I agree with you.
Good ended up as opposed to going below yesterday’s low, but the range is c-r-a-z-y!!!
I think at that time you purchased in an up market.
Hopefully it will be back up there this next year.
Could this have been the plunge protection team?
What bugs me the most if 200 PE for Netflix and other tech stocks. Not rational.
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