Everyone was selling high value stocks until SPY reaches SMA200 level. Once it is reached SMA200, other funds feel attractive and buying shares.

Today, I am lucky to get AMZN at $1699 and TEVA by GTC orders.

IMO, Market will be volatile another few days and then stabilized.


Market still feels weak. Let’s see what Black Friday and Black Monday bring. :scream:


Will bring about extinction of human race.



Amazon $1695… headed to $1300?

Looks like only AAPL and Amazon have held up the Nasdq. Now if efts sell they will get hit


They are scaring everyone with such news. Never believe it, use it with a grain of salt.

The impact of Trade war to US economy is 25% of 500B = 125B/year
The corp tax reduction benefited companies 39%-41% to 21% is appx 1.5 Trillion

Rate hike impact to credit cards are 1.5B. Even if it affects companies, it will hurt more, hard to calculate (may be with FactSet Research Systems Inc. )

On any case, economy is pumped with good amount of money, almost 1 Trillion/year.


Exactly. Big headlines but when you do the math you realize it’s not that big of deal.


So headlines are intended to scare.
Real stuffs are not reported?


Media has been fear driven for a LONG time. It’s what creates the most reading, watching, buying, etc.


tomorrow looks up.


dead cat bounce?


Results will turn the market up. Lot of Funds will flow next week as most of the equities are near SMA200.

It may fluctuate next week, but not steep down like Dead Cat Bounce.

This is repeat of Jan 26, 2018 bringing down equities to SMA200 level.


I saw one article speculate that stock buy backs are what’s driving the market higher. We’re in the quiet period before earnings where companies don’t do buy backs. There’s still a lock of cash allocated to buy backs in Q4 and into next year.


Doesnt look sustainable if true.


The entire human race isn’t sustainable on this planet and running on borrowed time.


Please dont bs what i say :slight_smile: if corp buybacks is the only reason market is high, when corps dont have money to borrow to buyback things will go south. Or is this too naive? I want marcus to answet because he does educate me on these matters occasionally and i appreciate


It all depends :slight_smile:

If most people are selling and the only buyers are buy backs, then the market crashes once buy backs run out.

If people are buying when buy backs run out, then the market keeps going higher but at a slower pace.

Stock price is still supply/demand. You need more buyers than sellers to go higher. That’s how price can detach from fundamentals. Short-term, it can really detach. It’s why sentiment matters.

I suspect mid-terms have more to do with this than anything. The market hates uncertainty. We had the same drop in 2016 and once the election was over stocks took off. Election rhetoric makes the country feel very divided and negative about our future. We can get the short-term disconnect between fundamentals and price.


We would have gone bad in year 2016, but Trump won, market changed by his commitment to reduce corp tax. Almost, Trillions are assured to be flowing into economy, a permanent growth is added. Worldwide investors are pouring money to US Equities, Investments and companies as US becomes tax haven country now.

This is the exact game changer.

Since money coming in and economy is growing, FED is aggressively applying rate hikes as they can not rate hike during weaker time. They do not want to go like Japan like negative side.


second half of 2015 if ppl remember economy is about to go bad
you know i really think it’s a good thing to like print out today’s news. and look back 1 or 2 years from now. you can really remember what happen and what is fake news back then.