102 replies to this topic

[tradesurfer]

Brace For A Monday Massacre: Buffett Liquidates All Airline Holdings As Berkshire Sees Another Leg Lower

 

 

https://www.zerohedg...rkshire-remains

Edited by tradesurfer, 02 May 2020 - 10:40 PM.

[Darris]

1st time the FED beat Warren to the gravy train.  He's another buy the dipper that missed the boat.

[dTraderB]

Sven Henrich

@NorthmanTrader

Congratulations @federalreserve. Market cap to GDP is back up into bubble territory at a whopping 138%.

https://northmantrad...5/03/smackdown/

[dTraderB]

"Of further note: Investors suddenly appeared to get cold feet on Thursday realizing that the Fed suddenly had drastically reduced the pace of its balance sheet expansion" 

 

While the interventions are still historically gigantic a drastic reduction in incremental liquidity amounts to a relative tightening. Markets that have been entirely dependent on artificial liquidity have yet to prove they can do without. In fact all evidence points to the contrary, for the liquidity reduction in 2018 resulted in a massive market correction and the 2019 rally didn’t really take off until the Fed expanded its balance sheet by nearly half a trillion dollars into Q4 and Q1.

No, last week’s month end rally disappeared as quickly as it appeared leaving a massive weekly rejection candle:

 

https://northmantrad...5/03/smackdown/

[dTraderB]

GCC markets in red as Saudi Arabia warns of ‘painful’ times ahead

KSA warns of deep spending cuts, GCC investors fret over others following suit

https://gulfnews.com...head-1.71302402

[dTraderB]

I think the GILEAD progress may trump the negative news/events during the weekend

 

Maybe, it just seems to me that the future is a but brighter is there is available a drug for COVID-19 that is already in production, can be used in emergencies, 

production can be ramped up, generics may soon appear, and this:

 

Gilead CEO says remdesivir available to coronavirus patients this week: ‘We’ve donated the entire supply’

https://www.cnbc.com...ire-supply.html

[robo]

Every bubble gets popped, and it's a shame this one was caused by a Virus from china..... Those in the market leveraged and all in know the risks....  This market is still overvalued. Buffet is raising more cash (tax right off for airlines next year) and will get ready to buy what he thinks will be the next big winner. For now more downside to come in my opinion, and maybe he agrees. His fund will now have lots of cash on hand when the SPX heads down to 1000 again and they are throwing out the babies with the bathwater....  He will be a big buyer, but  closer to the bottom I'm sure for the next Bull Market run...

Edited by robo, 03 May 2020 - 01:02 PM.

[pdx5]

 

 

 

 

 

Another place is High Yield Muni Bonds ... The Fed is supporting the market. HYD

I'm earning about 4.5% tax free on my investment. NHMAX

 

EMB for more risk.

 

 

 

I have a mix of HYBonds and stocks, buying the strong dips in stocks, and I am beating Buffet hands down, this year only LOL.

 

HYG had a very nice move up, but seems to be moving back down....  Waiting to see how next week plays out....

 

HYG on my IWM chart.......

 

https://stockcharts....092&a=743772845

 

Had something come up and couldn't finish my post.... I hear you on a nice safe 5% return Brother for some of my retirement money. I'm close to 70 now and have some funds I don't take much risk with.  I have some IRA CD's earning  close to 4% I bought sometime back.

 

Some more thoughts on HYG and why I track it......

 

HYG had a very nice move up, but seems to be moving back down.... It normally moves closely with stocks, or leads. It will be interesting to see if the Fed can change that too. If SPX BTs or retest the lows HYG should follow.  Waiting to see how next week plays out....  

 

HYG is a sector/pattern I track, but don't post much. I started tracking it after reading over some stuff from Jeff Clark....  Worth tracking in my opinion. On the chart below.....  Read over the posts from Jeff, and you can decided if it's a tool/pattern you want to use.   I use it when looking for clues on where the market might be headed. The Fed caused a spike, but can the divergence continue?

 

https://www.jeffclarktrader.com/?s=hyg

 

https://stockcharts....170&a=747293075

 

 

When I invest in anything long term (3+ years),  assuming the price is about the same 3+ years later when time arrives to sell, there is more profit if the item was down during the 3 year period than if it was higher. That is because the dividend reinvestment procures more shares of the security because of the lower prices during the 3 year period.

[dTraderB]

bought ES  2788  1 lot

[CLK]

https://invst.ly/qny0q