Comments on: WHO IS THE MYSTERY BUYER?

By: George Ann

George Ann — Thu, 19 Nov 2009 13:32:07 +0000

Trying to find the total video at fox. Unable to find it. Do not like snipetes of an interview. Would like to see the whole thing. This video is from May 2009 and now being addressed.

By: Rob

Rob — Mon, 16 Nov 2009 00:10:46 +0000

The market is overpriced but seems to me to be completely rational. (Or one can at least rationalize its level.) S&P500 earnings were $15.96 in Q3 2008 and the market end September (already post Lehman) at 1,166. Things were deteriorating in 2008. Fast forward to Q3 2009 and earnigns are $15.53 or so. Down about 3% versus 2008. Expectation for earnings last year were that they would continue to decline into Q4 (they sure did going negative for the first time in history). Now expectations are for earnings to continue a steady climb higher (as stimulus continues, cost cutting continues and sales stabilize). The S&P’s current level is a heck of a lot closer to its long-term trend that it has been over most of the past 15 years (the past year excluded).

On the surface, the finanicals are in a far better position than last year. Free money from the Fed, no mark-to-market, goverment backed loans, some still with TARP preferreds, etc. A banker would have to be a complete idiot not to make money now (just borrow at zero percent and buy Treasuries). So long as banks are confident that the Fed will not raise rates that will be an endless source of riches to offset mounting home mortgage, commercial real estate and credit card losses (which will continue to rise). The US treasury can issue debt, have the big banks buy it with free money from the Fed (the Fed never really needed to buy Treasuries to keep rates down, just convince the big banks that it was in their interest to do so). If I were a bank that was effectively insolvent, why would I lend to anyone and take on more potentially bad loans when I can get a guaranteed return from Uncle Sam. Earnings don’t look like they will deteriorate any time soon with so much government support.

By: Fyodor

Fyodor — Sat, 14 Nov 2009 20:30:07 +0000

787 billion leveraged up 20 times equals = 15 Trillion

At least that amount of money must be sloshing around and has to go somewhere.

By: John

John — Thu, 12 Nov 2009 19:42:54 +0000

The bears cannot “punish” the action because it is the Federal Reserve doing it, operating through the medium of programmed trading software at Goldman Sachs and other market making firms. A bear would need the total taxing power of the United States government to punish the action. It will only end when the excess dollars, created by the market pumping, flow so heavily into the currency market, that no one wants to buy treasury bonds denominated in a falling dollar anymore.

By: Henry

Henry — Thu, 12 Nov 2009 16:00:11 +0000

Man, the dollar did a moonshot and equities rally…..Asia was down..US market holding….where’s the correlation??

By: Anonymous

Anonymous — Thu, 12 Nov 2009 15:48:51 +0000

shaef, that you?

By: EB

EB — Thu, 12 Nov 2009 13:05:07 +0000

We did a study of SPY vs ES here:

http://wallstcheatsheet.com/trading-markets/trading-101/spy-vs-es-who%e2%80%99s-leading-the-sp-500/?p=3650/

By: mitch

mitch — Wed, 11 Nov 2009 17:40:53 +0000

Why is anyone surprised?
Its called “hammering the market”.
has been going on in Oil and Nat Gas futures for years.

CFTC has been investigating this for years in the energy world.

Just a shift of focus from relatively small commodity markets to a larger arena.

By: James

James — Wed, 11 Nov 2009 07:53:17 +0000

Does anyone know what software the charts showing SPY and the futures are from?

By: SpiderTrader

SpiderTrader — Wed, 11 Nov 2009 07:24:34 +0000

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