Market Talk / June 25 - July 1

[Wizard]

Strange closing action - The Dow tanks 40 points and Russell 2000 soars. I don't know if it's a misprint but I see the Russell up over 10 points today, or almost 1.5%, with over 4 of those points gained in the last 5 minutes.

Last second painting. Add the stocks with the best return of the quarter into your portfolio for your quarterly financial statement.

Who will know you only owned them for a couple minutes? But you will look like a financial guru if they are on the holdings list. :blink:

 

[FundSurfer]

Yeap, as soon as the quiet period is over they will start jawboning how everyone "got the statement wrong" again.

Remember last one? Gold went from 660 to 725 after the statement then the "tough talk" started and gold went to 570.

Maria "The MoneyHoney" was the mouthpiece.

Fool me once - shame on me, fool me twice, shame on ....

Any rally is a chance to off load. Look for that tough talk to start next week.

USD can not break 84. We are a borrow and spend economy.

I agreed with you wizard. The Fed has been in a very definite "this could be the last hike" during each hike followed by someone on the board saying "we need to be vigilent against inflation" a few days later.

Got to wonder when the herd will catch on. I think the big boys are already aware and anticipating. About the time I hear a talking head start talking about it, it will be time to dive for cover.

 

[robo]

Strange closing action - The Dow tanks 40 points and Russell 2000 soars. I don't know if it's a misprint but I see the Russell up over 10 points today, or almost 1.5%, with over 4 of those points gained in the last 5 minutes.

Tom,

I was watching the action on CNBC. I think it's the annual realignment of the Russell causing some fund Managers to buy stock. They stated lots of action the last 10 minutes.

 

[Wizard]

Tom,

I was watching the action on CNBC. I think it's the annual realignment of the Russell causing some fund Managers to buy stock. They stated lots of action the last 10 minutes.

Which happens to be the last day of the quarter.

Oh the front running tricks that must of been played. Expect the smart money to take a quick scalp and leave the mutual/ETF funds "that had to buy" hanging. :embarrest:

 

[tsptalk]

I think it's the annual realignment of the Russell causing some fund Managers to buy stock.

That makes sense. Thanks.

 

[robo]

Which happens to be the last day of the quarter.

Oh the front running tricks that must of been played. Expect the smart money to take a quick scalp and leave the mutual/ETF funds "that had to buy" hanging. :embarrest:

Whatever is happening its a sweet deal for me. I made 7.47% yesterday on small caps another 2% or 3% today would be sweet. I closed out all long postions at the close. Looking for setups next week to go long again.

UAPIX

http://www.profunds.com/prices/current.asp

 

[tsptalk]

The Russell 2000 had it's largest 3 day gain since October 2002. That happened to be the bottom of the bear for small caps (and the internal market.) The large caps didn't bottom until early 2003.

 

[robo]

The Russell 2000 had it's largest 3 day gain since October 2002. That happened to be the bottom of the bear for small caps (and the internal market.) The large caps didn't bottom until early 2003.

I was sent a buy signal on the Russell 2000 earlier this week. I bought stock and did it pay off well.

 

[Wizard]

I\The Fed has been in a very definite "this could be the last hike" during each hike followed by someone on the board saying "we need to be vigilent against inflation" a few days later.

Good to see the fed follows their own charter "Total transparency to the markets", huh FS?

 

[Wizard]

Ya, just wait for the last couple of hours at the end of the day when the programs kick it up. I also noticed the revised GDP figures showed that the chain-weighted GDP price index increased at a 3.1% rate, down from the previous estimate for the quarter of 3.3% and lower than the fourth quarter 3.5% rate of appreciation. Inflation contained. Who said sell gold? It's up almost $25 today.

You are a walking talking oxymoron.

Inflation is contained - gold is up $25 today.

The prices paid index rose to 89.0 in June from 76.9 in May. The June reading was the highest in 18 years, the NAPM-Chicago said.

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20060630&ID=5838008

Inflation is contained indeed.

 

[Birchtree]

Wizard,

You make a valid point in the tunnel - nothern Illinois and northwestern Indiana do not constitute the GDP - they simply add to it. Try a 60 watt instead of a 30 watt next time.

Dennis - permaBULL#1

 

[Wizard]

Wizard,

You make a valid point in the tunnel - nothern Illinois and northwestern Indiana do not constitute the GDP - they simply add to it. Try a 60 watt instead of a 30 watt next time.

Dennis - permaBULL#1

GDP was for the first quarter - Jan-Mar, Chicago NAPM was for LAST MONTH.

You really try to make investment decisions with data that is 90 days old and don't realize you are 3 months behind the curve?:blink:

Now I understand where you are coming from.

Now tell me what was going on the first week of April 2006 again so we can chat about making investment decision in July?

 

[Fivetears]

Greenback tumbles as core inflation reading leads investors to believe that the Fed may end rate hike campaign; Treasurys jump.
The dollar tumbled to three-week lows against the euro and the yen Friday after key inflation reports and yesterday's Federal Reserve statement suggested that the central bank is closer to bringing its monetary tightening campaign to an end.
Meanwhile, consumer sentiment rose more than expected in June, according to the University of Michigan's survey, but the upbeat consumer confidence reading did little to change negative dollar sentiment, analysts said.
http://money.cnn.com/2006/06/30/markets/bonds/index.htm

 

[Fivetears]

Paul La Monica: Inside the Fed.
The Fed did exactly what everybody thought it would on Thursday and the market rejoiced. But Alan Blinder, a former vice chairman of the Federal Reserve and now an influential economist with Princeton University, thinks that Wall Street's euphoric reaction was a bit overdone.

The two of us talked about the Fed over glasses of merlot during dinner at the Eisner's insanely large ranch Thursday night. (Tough life, eh?) Blinder said that he thought the market often makes the wrong call about the Fed at first. And he said that he read Thursday's statement and was not convinced that the Fed would pause just yet. He said that the Fed, by commenting on slowing economic activity, is clearly signaling that it may pause soon but that the market should never assume things with the Fed.

Blinder joked that he always found it amusing to see how the market would react to interest rate announcements when he was at the Fed. He said he would often guess how the market would respond following the announcement and found that it was often difficult to accurately predict what the stock and currency markets would do. The bond market was usually easier to figure out.

As for his former boss, Blinder said that Alan Greenspan pretty much spoke in private the same way he did in public. In other words, he was just as incomprehensible behind closed doors. Blinder thinks that it's a good thing that new Fed chair Ben Bernanke is more plain-spoken but that it will take a few months for Wall Street to get used to the fact that Bernanke, unlike the Maestro, doesn't speak in riddles.
http://money.cnn.com/blogs/brainstorm/index.html#115164573473456059

 

[Spaf]

See ya'll next week! Have a good holiday! Will be starting a new thread.

Regards.....................

.......................Spaf