Yesterday’s “blip” was China raising rates a smidge. That sent the dollar higher.
Dollar up=bad
Today, the speculation is that there is more, much more the FED will do to aid the economy, er, umm, markets. That is sending the dollar down.
Dollar down=good
Please forget about the $47 billion put back of mortgages to BAC. The market doesn’t need to worry about mortgages or BAC. All that matters is that the FED is conducting their Permanent Open Market Operations or POMO. Free money will trump any announcement from corporations or anywhere.
Free money is levered up 10:1 and plunged in as soon as it is available. So a $6b POMO equals $60b in buying–and add margin–and you get $120b in buying from a $6b inflow.
This is predictable given that we remain on a strict timetable to the November FED meeting where the official announcement of additional support will be revealed.
In the meantime, today’s market looks very much like the market did in late April after the Goldman indictment. After that news was released, stocks were hit hard for a day. They then bounced all the way back and the media said it would amount to nothing. Today we are making back much that was lost yesterday, but it is just a little bit more fragmented and not so “clean”.
Trade the lotto if you like because on the days that the FED has our back with POMO, there are no worries! The problem is when the money stops flowing.
ps. The Transports and Utilities are seeing big gains today
If you enjoy the content at iBankCoin, please follow us on Twitter
You are part of the noise my dear sir. Looking at your twits on Monday you would think Apple would crash. I hope people tune you out with your noise and just trade the price.
You read my “twits” with the clouded eye of being long AAPL. Probably recently. You are holding on to the tiger by the tail.
My noise would have had you in during consolidation and out during distribution. I’m looking forward to continuing to pare down my portfolio into strength. You may be the one buying my stocks.
If you don’t like the noise, then close your ears.
You are getting out too early son. This baby is going to DOW 14K.
why stop there? how about 20k?
the difference between you and me is that I will take my profits. You won’t becasue you are emotionally attached.
Why let these twits bother you Scott? Clearly you are superior to them. You have been nothing short of amazing with your calls, if they can’t appreciate that, then piss on them.
Thanks, Will
I hate to see folks who are paying attention to what some are doing and to simply ignore an experienced viewpoint.
Insanity is making the same mistakes over and over again.
The market has made back all it lost yesterday to the penny. Great! Enjoy it…Doesn’t mean taking profits is wrong. It is never wrong.
And BTW–if you’ve read my comments, you know I’m not yet ready to go the other way. I’ll let you know when I’m ready!
aapl did crash,it flashed on earnings announcement day and halted trading.lost over 17 points in seconds. hey,what ever “bud” you got must be nice.
Speaking of taking profits Scott, you still holding AIB?
Profits? Hah!
We bought at 2.25 and had a very hard stop at 1.75. Stopped at 1.72. Not going back in…
that was my lotto ticket and I lost…
Scott, are you still holding AVD, or did you get stopped out on that too? Thanks.
Averaged that down and holding…
We probably saw the top for the year today. If you want my reasons why, check my post under fly’s article “currency manipulators”
Scott, if i were you, id start pre-emptively working on your victory speech, following your “ringing the bell” post.
Yeah WTF i thought you said the market was going to crash!?
Just kidding…seriously though, i hope your hot streak continues as I am sitting in nearly all cash across all accounts now. Whatever though, i don’t like the risk/reward here, so if I miss out on some more upside…thats life.
Maybe it will drop off mid to late May 2011 so I’m in and out with 85 per cent cash until I see some sanity and jobs. Loosen up your stops ’cause we’re going back into some volatility.
scott,doesnt anyone realise that if frannie and freddie arent resolved that we will not have pure job creation as we should,and having to “stall” its resolution is becoming the stumbling block to all kinds of progress that lead to jobs and manufacturing.because the time of “cowtowing to the banks should have been over with,as far as restocking their coffers.if the dumb ass fed wants to resolve anything, let them stick their nose into frannie and freddie. who knows with the bearded clams power,maybe he can suggest that barney frank and chris dodd are to blame for this country having no work. right now as i see it,these 2 sob’s have a stranglehold on frn and fre and need to be pulled away from those 2. unless the “shit becomes vetted of those 2 and fnm,fre,this comtry is still gonna do the serious limp,for a long time.