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The Stock Market


DarterBlue

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2 minutes ago, noonereal said:

let's face it, capitalism needs to be bridled or it's a disastrous system for the masses. 

Without proper checks and safeguards, it's also disastrous for the capitalist class, too, as we would end up with frequent busts leading to very deep recessions, if not outright depressions.

The problem with unregulated capitalism is that it is inherently unstable and does not tend to equilibrium, as suggested in most textbooks. 

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22 hours ago, DarterBlue said:

It is always good to have your trade start off positively. However, unlike the end of January when I was relatively certain that the market was going to go south violently, I am less sure this time. With that said, my decision to go short again was based on last week's action, this Monday's selloff, and Tuesday's tepid bounce back. With respect to last week's action, Tuesday, March 13, was a key reversal day in the sense that the market after opening up, reversed violently to the downside. It was followed by successive stalling day on Wednesday and Thursday, with a very mild, positive bounce on Friday. Well, over the weekend, a lot went on on political front. Nothing surprising there, as the current Presidency has been characterized by unceasing drama. What was surprising was the market's response on Monday. For the first time, it appeared to react negatively to our political turmoil, as Monday was a bad market day. And Tuesday resembled Friday of last week in that the bounce back was very mild. With the FED making its decision on interest rates today, I felt initiating another short position was in order as I expected it would remain on track to continue raising rates. After all, it pretty much has no choice. Now 1/4 point hikes in of themselves would normally have little impact given how low rates are to begin with. However, this entire bull market has been predicated on easy monetary policy. Given what I consider as its extreme overvaluation, once easy money is off the table, we could easily see a 40% or more decline in the prices of financial assets. And with the weakness last week and questionable action this week, perhaps the process did indeed begin at the end of January 2018. For, despite the NASDAQ indexes hitting new highs in March, the other indices have not gotten there yet, and based on recent action, may not get there in this cycle. 

For the second time in a row, my entry was pretty good. However, the first time I was wrong in believing that the market was pretty much going to go straight down from its January highs, rather than top out over time. As a result, that trade was closed with minimal profit. At the close today, using the mid range between bid and ask (on a quiet trading day you can usually get a fill at that price), the new positions were up approximately $9k. Adding yesterday's closing results, the positions now show a $10k profit, or approximately 16.5% on funds deployed in a day and a half. Call it veteran's luck if you will, the trick now will be to manage this trade properly. 

First, I will start by repeating that I am a position trader, not a day trader. So, unless the market literally falls out of bed tomorrow, I am very unlikely to close the positions. From here, the next test comes at the February lows for the DOW and NYSE. Yes, I know my positions are short the Russell, NASDAQ 100 and S&P 500. However, the DOW and NYSE are closest to breaking their February lows and if they do, I fully expect the other major indices to follow. Should they hold these lows, assuming they actually test them, then that would be a good sign for the bulls. If they slice through them, then I fully expect triple digit profits from these trades before they are closed. On the other hand, should tomorrow be a strong rebound day, I will have to do some homework over the weekend.

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23 minutes ago, noonereal said:

I won big playing the "wrong" today. ;)

Could he be any more stupid? He bows to Russia because it's "good" for the country but he shots on China who we owe untold billions to? I'm positive if trump said to jump out of a plane at 30,000 feet because it was good for the country the ring wing whack jobs would do it. Please trump tweet that out. Please!!!!!

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Just now, AztecPadre said:

Could he be any more stupid? He bows to Russia because it's "good" for the country but he shots on China who we owe untold billions to? I'm positive if trump said to jump out of a plane at 30,000 feet because it was good for the country the ring wing whack jobs would do it. Please trump tweet that out. Please!!!!!

I so wish he'd tweet instructions to his TrumpTards to jump off a roof. So many would do it lol

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1 hour ago, HSFBfan said:

@DarterBluedow is back above 24k

If you understand market action, you will realize that today has been a very inconclusive one. Unless you get a big rally into the close, and that's possible, it will have actually been a disappointing day, given the weakness this week and last.

The key is whether it continues to rally and pulls the troops (other indexes) with it. Short of that, the odds are early next week we will take out today's lows, which, BTW, bearishly undercut yesterday's lows. 

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5 minutes ago, DarterBlue said:

If you understand market action, you will realize that today has been a very inclusive one. Unless you get a big rally into the close, and that's possible, it will have actually been a disappointing day, given the weakness this week and last.

The key is whether it continues to rally and pulls the troops (other indexes) with it. Short of that, the odds are early next week we will take out today's lows, which, BTW, bearishly undercut yesterday's lows. 

I'm just happy to see it above 24k

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Just now, DarterBlue said:

Alcohol contributed to my dad's early death. A beer there, a glass of wine here, even a little of the hard stuff is fine. Just never become dependent on it and don't use it as a salve. 

Sorry to hear about your dad. Being very serious about that. 

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2 minutes ago, TheBlockIsHot said:

So you are not invested in the market at all, but watch the market as a measure of the economy's success which does not benefit you at all?

I like seeing millionaires being made. Very happy for them. We now have the most amount of millionaires ever in this country. People making money everyday. 

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2 minutes ago, HSFBfan said:

Sorry to hear about your dad. Being very serious about that. 

Thanks. He had his own inner demons. He was a good man with some very real, human weaknesses. I credit him with instilling a love of learning in me which is probably why I am still alive and kicking today. 

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