DOW UP 120+ (3:14 pm)

[brent352]

What does this mean for those of us who are wall street newbies? How is it possible to have a start of -300+ and then end the day with +120? Whats propping up the DOW at this point?

 

[Fox McCloud]

easy.

There's two things that help prevent a collapse in the US:

the PPT (Plunge Protection Team) and the Fed. By the Fed cutting interest rates yesterday, it makes for easy money...which means more investing, thus giving the illusion that everything is "ok".

Of course, it means more inflation too.

 

[Dark_Horse_Rider]

surprise surprise surprise

 

[Fox McCloud]

it doesn't mean it won't last though; eventually we'll lower interest rates too much and crash our dollar, some "event" will happen and people will lose faith in the dollar, or things will just spiral out of control for anyone to control.

it can't last forever. When will it crash? Could be tomorrow, could get a year or more from now; however, I honestly don't believe we have past 2010.

 

[constitutional]

Dow 12,243.26 +272.07 (2.27%)
Nasdaq 2,318.02 +25.75 (1.12%)
S&P 500 1,337.71 +27.21 (2.08%)

 

[webaform]

Some companies are still making products and providing services. They probably don't have immediate exposure to the liquidity crunch. Only time will tell if they can make the correct decisions to cope with any economic downturn.

The companies that I own reported better than expected numbers. For example, sales were higher than expected in the last quarter. With these better fundamentals they are able to counter any general decline in the market.

 

[brent352]

Thanks for the reply helps to clarify a ton.

 

[davver]

This Week

Dow: Up 1%
England: Down 3.27%
Germany: Down 12%
France: Down 7.28%
Japan: Down 7.4%
Honk Kong: Down 4.4%
Shanghai: Down 8.5%
Taiwan: Down 8.7%
Australia: Down 3%
India: Down 7.4%
Brazil: Down 5.6%

Somebody doesn't belong.

 

[AceNZ]

The market is now expecting another 3/4 point rate cut before the end of the month.

More inflation = stock prices up

 

[Tom228]

Seems like a potentially good time to buy stocks while they're still cheap.

 

[Molly1]

It's just a technical bounce.

Stocks were oversold.

 

[Peterjar]

uhh, people tend to sell in the morning and buy when prices are low before the close of the day. Its not the daily trend that matters but the overll trends over the week and months!

 

[tsetsefly]

uhh, people tend to sell in the morning and buy when prices are low before the close of the day. Its not the daily trend that matters but the overll trends over the week and months!

+1. Funny to see all the financial advisors out there touting this as a great day and having us recover, bla bla bla, they should know better....

all those buyers will just look at the numbers in the coming weeks and realize oh wait, we are screwed...

 

[Fox McCloud]

+1. Funny to see all the financial advisors out there touting this as a great day and having us recover, bla bla bla, they should know better....

all those buyers will just look at the numbers in the coming weeks and realize oh wait, we are screwed...

As Upton Sinclair said "It's hard to get a man to understand something, if his paycheck depends upon him not understanding it."

he's not going to advise you to invest some money in gold....and more often than not, when you talk to them about it, they'll say it's a "bad idea".

anyway, the market dropped to -200, then went to +298...while this may seem good, to me it's only an indication that people think things are ok since the Fed cut rates, and encourage the pumping of money directly into the economy. It works in the short run, but eventually, the whole thing will come down if they're not careful.

another 0.75% rate cut by the end of the month? What are they trying to do? Intentionally crash the dollar?