4 replies to this topic

[fluid]

Weak earnings are trumped by liquidity and relative valuations, both of which are positive at the moment. Stocks can, on occasions, rise when earnings disappoint by the way, if the overarching conditions are robust and strong and the market sees better times ahead from the current ones. Its a period of revaluation and no where else to put your money, earning zero interest rates. ZIRP. Such markets are difficult to trade and catch many by the surprise, but momentum can take them up further. SO: I am staying long, and have stops in place will trail them up. I don't feel comfortable joining all the other bears out there and believe we wil see higher prices, albeit as a slower/diminishing rate than we have seen, but still progress. All FWIW>

[Sentient Being]

I'm wondering if politics is controlling the actions of the fed. The dems have another election coming up and are afraid of losing the senate. The feds might try to prop things up until after the 2014 elections and keep the president happy and in control. QE may be for longer than we think.

[fluid]

German election, things should hold up until then imo.

[Sentient Being]

German election, things should hold up until then imo.

Seems to me that after the German elections the German politicians will be free to keep showering the broken EU states with cash.

[fluid]

Any excuse to keep the whole thing afloat. On the view the 4 year cycle projects a bottom into 2014, we are still in a time window for markets to make progress into autumn. They are also cheap basis risk premium, which is one key to the stock market and equivalent to the 200 DMA.