Official Stock Market & Economy Thread

[freakydestroyer]

buy SRS now??

 

[dey know yayo]

According to Reuters, former Fedchairman Alan Greenspan is absolving himself from blame for the financial crisis by claiming his easy credit policies didn't cause the easy credit behindthe crash.

"It was indeed lower interest rates that spawned the speculative euphoria. However, the interest rate that mattered was not the federal-funds rate."

Total load of BS. The lower fed funds rate is what caused the mass leveraged financing of mortgage backed derivatives as well as the housing bubble. Directly.Maybe he needs to take an elementary lesson on credit bubbles, like this (extremely informative) beginner's video to the credit crisis by Jonathan Jarvis called "The Crisis of Credit"...


The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

As one Fed chairman dismisses claims against easing credit, another one issues even more easy-credit sentiments. Reuters states that the Federal Reserve isstrongly considering resorting to quantitative easing (laymens term: counterfeiting) after seeing the "apparent success" (really, Ben? really?) ofthe Bank of England's recent decision to do so.

This is America, so we won't have hyperinflation or anything because of the threat of mutually assured destruction that comes with trying to spark a run onthe dollar. But this cements my opinion that a coordination devaluation of fiat currencies against hard assets is in store for the next few years because ofglobal monetary expansion caused by central banks in reaction to the credit crisis. The financial crisis should turn into a monetary crisis in the next twoyears. As soon as rates start rising because of a saturated Treasury market abroad, precious metals should start their exponential run-ups.

 

[dey know yayo]

Originally Posted by brettTHEjett

I short stocks in GS, MS, NTRS [as per DKY] and lost $6,810.00 (~10%) in my simulator.

never said it was time to make the big moves yet... said we needed to wait for a bounce. the bounce is happening, i might go short a big position tomorrow,stay posted.

 

[foodgoeshere]

gold pulled back to roughly 900, are you waiting for this rally to end before loading up on gold equities?

 

[dey know yayo]

ideally gold pullsb ack to 875

 

[dey know yayo]

fslr is a terrific ss here.

 

[finnns2003]

Originally Posted by Dey Know Yayo

ideally gold pullsb ack to 875

hmm, gotta

for that.

 

[banks2pierce]

DKY, love the idea of going against the euro into weekends with tight stops. One of these weekends, Europe is gonna be hell.

I am mostly loaded into DIA puts(June) and other select Dow components. I might leg in more tomorrow if there is more rallying. Think s&p will bounce offof 740 or 750. 740 is my target and it will be a crazy fall from there.


Dow: Going to 6k I think in the near term. This baby is without a doubt going under 3k this year. Think the Friday/monday combo is going to be a crazy 1/2punch. Dont get caught long going into Friday!

 

[freakydestroyer]

What is going to happen to BAC??

 

[dey know yayo]

i think well bottom in the 5000s in the fall, we'll see.

s&p 740-750 is the first level of resistance and dow 7500 is the next, though i doubt it gets up that far. this is clearly an oversold bounce, there is norally to be had here.

euro toast.

 

[reigndrop]

Originally Posted by freakydestroyer

What is going to happen to BAC??

Further writedowns, further losses.

 

[finnns2003]

yen has done well against the dollar lately, interesting.

 

[tsman]

DKY, do you still plan on Selling the Euro soon, if so like Banks2Pierce said above, are you going to keep shorting it with tight stops over the weekends.

 

[curiousgeorg3]

Originally Posted by finnns2003

Originally Posted by Dey Know Yayo

ideally gold pullsb ack to 875

hmm, gotta

for that.

GLD pulled back to its rising trendline and held its 87.50 support. I think its going to bounce here.

 

[dey know yayo]

Clearly inflation is going to be the issue of economic importance in coming years once credit starts easing and all of the central bank spending of the lastseveral months bleeds into the system. Though we are still at the least several months away from the inflationary scenario, sentiments of inflationary risk arefinally starting to pop up. First it was precious metals rising in deflation, now this.

First, PIMCO issues a statement about the impendingreturn of inflation and its now bullish outlook on commodities. And now, the Telegraph issued a report statingthe quantitative easing in the UK will lead to rampant inflation as the financial crisis turns into a monetary one.

Gold.

 

[toppshotta]

I literally just started trying to learn technical analysis 2 days ago. With that being said, anybody else super bullish on LMT right now?

 

[superantigen]

I am getting hammered out here...RFN is tanking, FAZ is tanking, and don't even get me started on SRS...

...

 

[curiousgeorg3]

Something seems odd about the market today. Golds up, treasuries are up, but the markets also up on low low volume. I think the last hour should determinewhether this move is sustainable, I doubt it though.

 

[dey know yayo]

7500 is my target for this rally. bear market rallies can be vicious. we were so oversold, the bounce might be bigger and take longer than originally expected.all this does is give an even better position to short into. faz srs rfn skf etc etc are not stocks to hold very long, theyre meant to be actively traded withtight stops.

i have some gs puts i'm losing money in and uso calls i'm up on a little bit but that's abotu it.

this is a bs rally

 

[dey know yayo]

s&p 750 could be the first level of resistance.

 

[xi shine xi]

DKY do you think the rally will last til next week?

 

[illmatickal]

^i wouldn't go long into the weekend

 

[fede dpt]

These rallys this week couldn't all be from the Cititgroup, ect. profits?

 

[tsman]

^^There has been a lot of positive news the last few days. Citi, BofA, JPM, all came out saying they have been profitable. Also, consumer numbers were betterthan expected. Then you some people thinking we may be at the bottom, plus short sellers forced to cover. This is some of the underlying reasons for the rally,yet most believe (Like DKY has stated) it is just a bear rally, in that we may very well dip bag and test previous lows. Most likely make new lows.


Question for DKY, you bought in at those GS march75puts at about 92-93, with today gains are you just holding these? At what point would you realize the lossand wait for better time? Just trying to get insight into your trading though process, thanks.

 

[mnmballa2323]

FAS

is it time to dump FAS and pick up FAZ?