Looks to me like the "smart people" buying "bargains" driving up the market, then once it hits resistance the short sellers sell to the "smart people", driving the market down.
Agree.
Gaps up in the morning and then fades out during the day...not very constructive.
Shows that our market takes the lead from overnight markets, but it is very concerned about the Fed's outcome (or whatever). May not hold any gains today, but let's see...
I dont visit (or atleast contribute) here as often as I should. But I have to ask, and hope one of you experinenced guys can tell me. Perhaps my figures are wrong?
This is the thing that REALLY worries me.
Right now, with all the bad news going around, the DOW is still up some 71% from the GFC lows. I think it reached something like 93% a couple of months back. The ASX on the other hand is currently up about 30%. I think we got to maybe 55% back in April? We tracked the DOW for a while, and then we trended slowly down.
What happens if the market does Tank, and the DOW goes back to say GFC lows circa 6500....where to we head? 1800?
Looks to me like the "smart people" buying "bargains" driving up the market, then once it hits resistance the short sellers sell to the "smart people", driving the market down.
I'm glad the Aus market is being cautious.
I am concerned that the US has got ahead of itself. I do not anticipate full blown QE3, merely tinkering at the edges.
I wonder if you and the rest of the market and country will be happy if the ASX shows the same "caution" on the way down if it follows the current behaviour. So so many people would get burned to extinction. Just stop and think about the ASX being at 2500, and what this would do to our country.
Whilst there, ask the same question what would happen if tommorrow the dollar went back to 80c. The whole country would be SCREWED.
I worked it out the DOW would need to drop 42% to get back to GFC lows....so would we do the same? God help us if we do.
Today and yesterday is the same story has been repeated over and over again. The DOW had a good night, then the futures are down for our market, and we take our lead from that.
It is completely moronic.
Looks to me like the "smart people" buying "bargains" driving up the market, then once it hits resistance the short sellers sell to the "smart people", driving the market down.
“We have created a very bad precedent,” said Jim Paulsen, chief investment strategist for Wells Capital Management in Minneapolis. “The financial markets whine and policy officials jump. The Fed has become the Pavlov’s dog of the stock market, and this is a horrible precedent for policy makers.”
I think I saw T/A say something to this effect very recently.
When the prices driven up by the "smart Buyers" buying bargains hit "resistance" and the "shorters" step in, are you referring to CFD shorters, hedge funds selling down borrowed stock or the "Smart people" that didn't get out before now selling into the bounce to protect their capital in this period of volitility?
:microwave
The deal, announced after markets closed, amounts to a huge vote of confidence by Buffett in the investment banking titan, at a time when investors remain spooked about the future of Wall Street.
"Goldman Sachs is an exceptional institution," Buffett said in a statement. "It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance."
“Bank of America is a strong, well-led company, and I called Brian to tell him I wanted to invest in it,” said Berkshire Hathaway Chairman and Chief Executive Officer Warren Buffett. “I am impressed with the profit-generating abilities of this franchise, and that they are acting aggressively to put their challenges behind them. Bank of America is focused on their customers and on serving them well.”
Shades of 2008 again?!
Sept 2008 - Buffett boosts Goldman Sachs with $5-billion investment
http://latimesblogs.latimes.com/money_co/2008/09/warren-buffett.html
Tonight - Warren Buffett to invest $5 billion in Bank of America
http://www.reuters.com/article/2011/08/25/us-bankofamerica-idUSTRE77N4J420110825
He managed to boost the SPX for about an hour, but the night is still young I suppose.
For the record, Buffett bought into GS when it was $122. GS bottomed 2 months later at $48.
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