Discuss Market Comments 10/08

Another outside day - After opening higher, stocks were under pressure most of the day yesterday but managed to close off their lows. The Dow closed the day down 19-points..

Market Commentary for 10/08/10

Current Daily Market Commentary

 

[Cortez]

Bad NFP numbers are good for equities as it increases the likelihood of a full press QE2.

 

[tsptalk]

Interesting take. Bad news is good news if you are looking for QE2.

They said the same about the ISM the other day (bad news would be good news), but it came in strong and the market rallied, so it seems stocks can't lose.

 

[Cortez]

Interesting take. Bad news is good news if you are looking for QE2.

They said the same about the ISM the other day (bad news would be good news), but it came in strong and the market rallied, so it seems stocks can't lose.

I agree. If fundamentals improve then the market will make money from increased earnings expectations. If things get worse, then the market will make money from Benny and QE2.

The FED will eventually crush the bond market in order to get investors into riskier asset classes. Of course I am not 100% equities even though I believe this. Why? Ultimately, I fear May 6 take 2.

 

[tsptalk]

Ultimately, I fear May 6 take 2.

Really? Because of the potential for a technical screw up like on May 6, or because of a potential crash in general?

 

[Cortez]

Really? Because of the potential for a technical screw up like on May 6, or because of a potential crash in general?

A crash in particular but also the fear that a screw up will result in a crash.