STOCK MARKET QUESTION?

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joe2baba's picture
joe2baba
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STOCK MARKET QUESTION?

hey y'all i have never owned a stock but have gotten into watching the markets everyday just to see what is going on.

i have noticed something. it seems that in general there is a dip at some point in the day maybe more dips . then there is usually an uptick at abut 2 pm today is pretty typical of what i see.

any ideas on why this might occur? do the traders buy just before running off to meet the school bus?

cat233's picture
cat233
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Re: STOCK MARKET QUESTION?
In the past it was usually day traders, but lately it is more so firms, especially the hedge funds causing the price movement towards the end of the trading day.  Lately no one wants to hold positions overnight. 
In October, I was in NY when the sky came crashing down.  I parked myself in front of the NYSE and grabbed a floor trader.  He trades for a midsize firm and told me they hold as little as possible overnight. He said they have to buy in the morning.  This is part of what was causing the massive sell offs, firms were closing positions at the end of the day.  The difference in what I do when I trade is I have a choice, I don't have to buy.  I can sit on the sidelines, sell or buy. 
Of course it hasn't always been as crazy as it has been the past few months.  Before all of this craziness, you wouldn't usually see the move until the last five or ten minutes of the day and it certainly wasn't this extreme.  Traders love the volatility, that is how you make money, in the movement of the stock, up or down.
kahibe's picture
kahibe
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Re: STOCK MARKET QUESTION?

Generally you watch the last half hour of the day...if you see a steep selloff...it usually doesn't portend well.  If you see an upward move as we've seen lately...that indicates better sentiment.  I think the market is into discounting an end to the recession in mid 2009....plus reacting to a very oversold condition...now how long will it last?

krogoth's picture
krogoth
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The big question

What or where is the money coming in to prop up this market so much? That's my question, because these conditions should be slamming it down below 7000 or more, and people should be selling off because of needed capital before the holidays. Something is fishy with this kind of stability and point level. Plus, too many stocks are holding higher than usual price points, when they should be diving like a kamikaze. Any ideas?

 

 

 

 

Ray Hewitt's picture
Ray Hewitt
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Re: The big question

I've noticed too that the Dow seems to be stuck above the 8,000 level, no matter how bad the news. That has the fingerprints of the Plunge Protection Team all over it. It was confirmed to me when I learned that the insurance companies face mass insolvency when the Dow breaks below 8,000. It has something to do with the ratio of assets to liability mandated by law.

krogoth's picture
krogoth
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Plunge Protection Team

I have been reading about this PPT, and  wonder how they are funded if they exist. Are they backed by the Fed you think? I have posted over and over an honest area would be at 7000 or below right now, and 8000 seems to be the watermark its holding at. What do we need to happen to get below 8000? Ridiculous the way the Dow is at right now under these conditions. Why would they just not halt the market if they felt a crash was coming, or even a threat below 8000. They did it before, they can do it again. I am still trying to figure out where the capital coming into the market is coming from. It seems this PPT is becoming more of a reality for me because I can't see anything else keeping it afloat except government money of some sort from some place, unapproved by Congress of course. Go buy your gloves so we can all go build roads and bridges now to save our economy. It just getting so stupid it's almost like watching a daily comedy show instead of watching our government.

The Game Continues

Ray Hewitt's picture
Ray Hewitt
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Re: STOCK MARKET QUESTION?

Krogoth

There are plenty of articles on the PPT on the web. I don't try to memorize the details, so don't take me verbatum. It was formed after the crash of 86 to prevent future crashes. The Secretary of Treasury lords over the team, which includes Treasury, Federal Reserve, several Wall Street firms and European central banks. To keep stocks up, they mostly buy Calls. Sometimes they buy stocks directly, but it's very expensive. Because of federal reporting requirements, they have access to insider information, enabling them to know where to apply pressure. The PPT is charged with protecting the dollar and the Treasury bond market, so it covers a lot ot territory.

The eggheads are convinced that markets rise and fall purely because of unexplained changes in mass psychology. Lying to the public is standard practice, so I can see the  rationale behind it. The bottom line is that they can create illusions. They can slow it down at the expense of worse future consequences. But they can't stop it.

Why would they just not halt the market if they felt a crash was coming, or even a threat below 8000. 

That would create a Panic with a capital P. The other way is much more subtle.

I am still trying to figure out where the capital coming into the market is coming from. 

The Feds have an infinite supply.

It just getting so stupid it's almost like watching a daily comedy show instead of watching our government.

Practically everything government does is inverse to anything rational. That's the nature of political power wedded to rule by force.

There is a secondary reason for the Dow's odd behavior. This is the end ot the year when Wall Street likes to dress up its balance sheets. They need those bonuses more than ever now. All bets are off in the coming new year.

krogoth's picture
krogoth
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Fed Money

Well I figured it's Fed money of some source. It's the only way it can be up like this. You still didn't answer what YOU think will bring it down to below 8000. I mean, do you really think they will just keep pumping this until EOY, or do you think after EOY that it will start seeing a reflection of all these drastic conditions and break the 8000 mark?

 

 

 

Ray Hewitt's picture
Ray Hewitt
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Posts: 458
Re: STOCK MARKET QUESTION?

You still didn't answer what YOU think will bring it down to below 8000. I mean,

I didn't answer because I have no idea. I wouldn't even try to guess who will do what and when. I estimate a 90% drop from the high of 14,000 and a total collapse of the dollar, but i can't give a timeline.
I wrote on another post that I lived with my ex-wife for twenty years and I still couldn't predict what she would do during our divorce. And that is only one person.

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