Today Market

[Jil]

@acre

Lucky for me the bulk of the gains came at the end of the day and not at the open.
Of course tomorrow is another day.

Today regular hour buyers are big banks, big hedge funds and wall street market makers. They run their computer algorithms to know the impact of virus and benefit of at least 2 further rate cuts.

They are like whales of the ocean.

Sellers are scared retail investors to save money. They can not with stand the whales, getting killed by them !

Poor retail investors scared by news/media hypes as if we are at end of the world ! Here after, news/media move the corona story from front page to last page and people will forget after few weeks.

Coronavirus enters in stock history !

This has been happening every cycle of UPs and DOWNs.

[Elt1]

Trump is the main target of coronavirus. Men over seventy who don’t take care if their health. Bernie, Joe and Bloomberg too. The virus us could change the outcome of the election.

[hanera]

@Elt1

Trump is the main target of coronavirus. Men over seventy who don’t take care if their health. Bernie, Joe and Bloomberg too. The virus us could change the outcome of the election.

Ain’t current political leaders globally are over 50+ years, likely with some kind of pre-medical conditions? Is this nature way of rejuvenation?

[acre]

@manch

Not just monetary, there’s talk of fiscal policy accommodation too. Trump is right to be scared. If this is still a thing in late summer he will probably lose to Comrade Bernie.

Only if it causes a significant rise in unemployment which it may not. And even if it does that could well make people even more nervous about voting for the Bern.
In '87 the stock market fell nearly 40% in a week. In '88 Bush beat Dukakis.

[caiguycaiguy]

Stocks surge after the Fed cuts rates by half a point, a surprise move to...

[marcus335]

Time to back up the truck and get long AF.

[acre]

Well cash is clearly trash with yields far below inflation so where else are you going to go?

[marcus335]

Wow, SPY dropped back below the 200-day. Was the fed move so anticipated that it was a sell the news event?

[Jil]

This is pull back of yesterday 5% jump. This will resume tomorrow or evening.

Here is the chance for those who did not buy last Friday.

See warren buffet is buying DAL more ( in news) SEC FORM 4

IMO, this is not DCB.

[marcus335]

The reaction to a surprise rate cut is pretty terrible. It was priced in to happen at the meeting in a couple of weeks. It appears the fed doing it now is making people think the economy is slowing down much worse than thought. Why else would they knee jerk a half point cut with a meeting in a couple of weeks?

[harriet]

Perhaps they realize rate cuts don’t work in a supply shock environment either. Powell blew up big time.

[Jil]

It is Trump who pressurized Powell to provide immediate strong rate, it backfires as market things something real issue is there.

When market comes to know it is not, likely go up. Now, the mode must be up run (not DCB), but we never know future.

[BA_lurker]

yep. Fed acting unexpectedly makes the market thing there’s something going on they don’t know. The administration has made powell their errand boy and now we are seeing the results of this.

[Jil]

If you really look at fundamentals, Rate cut is positive for economy and it’s growth, but market pricing it wrongly with covad-19 issue.

Any way, I am into margin today as it will not long last, come what may !

[BA_lurker]

@Jil

If you really look at fundamentals, Rate cut is positive for economy and it’s growth, but market pricing it wrongly with covad-19 issue.

Any way, I am into margin today as it will not long last, come what may !

I have been buying VOO as the market went down. between the last 7 days, i have spent 2/3rds of my cash. 1/3rd left

[hanera]

Echo chamber? No alternative opinions?

[Jil]

I can say my picks, but that is aggressive. This low is rare chance of steep drop of SPY (VOO) and rate cut (0.50) is extraordinary from FED. I just bought VOO, MSFT, AAPL, T, TSLA, BGS and UPRO, then SPY & BYND LEAP CALLS.

I am still over all positive 9% since last Friday (but today morning I was 22% up) !

BTW: I am too aggressive, please do not follow, esp UPRO (3x) very risky.

[Jil]

@caiguycaiguy

Jil can ride this volatility and make good money consistently

I ride it as I know the pitfalls, lost and gained wild. I am also trying to avoid frequent trading, but unable to do with market fluctuation.

Most of the time, my greediness (and aggressive steps/picks) is real culprit on my losses. Still long way to go.

[hanera]

@caiguycaiguy

Sure, people should not trade their portfolio as frequently as you or Jil.

Huh? I belong to the below category,

@caiguycaiguy

Most people should stick to an asset allocation that is appropriate for their risk tolerance, invest in broad-based market index funds, and invest for the long term over 30-50 years.

Anyhoo I was asking what is the alternative opinion of Fed action. Always surprise how people can interpret so way off. You are still struggling with asset allocation vs trading?

[harriet]

I’m not convinced the bear case is over. Options for now until it gets worse. Was up 60% yesterday with the options I bought last Friday but now back to 22%.