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IBDvalueinvestin (99.67)

Markets rebound nearly +500 points from recent Low.

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June 07, 2012 – Comments (5) | RELATED TICKERS: QQQ , DIA , SPY

HAHA is my sentiment , the reason its rebounded has nothing to do with the recent data and everything to do with some who think its time to go bargain hunting.

Its called catching a falling knife and it almost always cuts you the first time you attempt to do it.

 

All these novice buyers the last 3 days will soon get a reality check and lose a big chunk of their money as the next leg down starts in earnest again.

 

Recent data is still trending to worsening conditions both in the States and overseas.

Time to re-short the market.

5 Comments – Post Your Own

#1) On June 07, 2012 at 2:40 PM, IBDvalueinvestin (99.67) wrote:

On June 4th the fear index tracking etf UVXY hit a high of $24.09 , right now its down all the way to $16.45.

Have things really changed that much for the better in just 3 days?

I highly doubt it and the month plus trend will re-surface very soon.

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#2) On June 07, 2012 at 3:41 PM, IBDvalueinvestin (99.67) wrote:

 

Financial discombobulation

Published: June 06, 2012

GreenSpan at it again:

"There is a fear of the future, and when you begin to try to disaggregate what's causing that you come up with probably 40 percent of it is the fact that the economy is sagging."

So the economy is sagging partly because people are worried that it's sagging.

In two weeks the Federal Reserve meets to try to consider ways to take the droop out of the financial indicators. The bankers should consider the danger of overstimulation.

A future that looks less promising than the present is the reality in Greece and Spain, where the unemployment rates are above 20 percent. We're not all in the same boat yet. A worthy goal of the Fed, the White House and Congress would be to keep it that way — by keeping the printing presses under control.

Read the entire article

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#3) On June 07, 2012 at 6:07 PM, edwjm (99.87) wrote:

Time to short the market ???

That was about a month ago, not now!

I would say the market is entering a period of high volatility, a very dangerous time fror short term trading.  Unless you are a highly experienced day trader with a good record of successful action, I would advise staying clear until all the knives come to rest.

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#4) On June 07, 2012 at 9:27 PM, Speculatormaster (< 20) wrote:

Question to you

How do you know, exactly that the buyers are novice buyers? and no pros like Buffet, and famous hedge funds that buy on the fear of others?

I don't have any idea of which are the buyers, but any way I found the post interesting enought to make my speculation about the market rally. 

Well is interesting, the first point is the rally was and is too powerful just to be taked so lightly, this kind of rally are too powerful for name it sucker's rally like much of the media agree, in reality I don't care which are the buyers, I just use logic to conclude was just too powerful to take it so lightly.

In fact was so powerful that in the end I think and reach to the conclusion that will prevail the upside, the market seem is consolidating in 12,550 may be with high odds the zone the short seller are using,  so that is what I think their holding zone, there will be a moment in that short seller will be out numbered by the buyers, and all those short seller will get trapped, giving all their money to the bulls.

I think also the best moment for invest is now, just following Buffet comments in certain mode, Buffet seem that think the US will not enter in recesion again that is low odds, I agree also, because I think Europe in last case will do the same that USA do, bail out, after bail out

So may be the market has more odds to up, fundamentals are and will improve also, the oil at actual levels are managable to the economy, and gold remain stuck, but oil need to stay in that zone a long time (around $85 to give the economy a break, when I say the economy, I refer to the business, in the way the business can manage cost down, all will improve, employment, etc.)

And believe that what bussiness are trying long long time ago, is lowering cost, sadly are choosing the easy way, lay off, or up price, I rather prefer the other way, invest in useful technology, that improve cost, and margins, but I can't control business take decisions. Some bussiness are enought wise to invest in that technology, and soon will expand and create employees oportunities, but if bussines don't expand is because right now have fear, that people can't pay their products.

Any only time can say the true, I am just giving my perspective.

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#5) On June 08, 2012 at 2:18 PM, IBDvalueinvestin (99.67) wrote:

I can see who is bullish or bearish here:

 http://www.forexpros.com/indices/nq-100-futures-scoreboard

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