Dow Closes Above 10,000 For First Time In A Year

Discussion in 'Politics' started by D_Ireonsyd_Colonrinse, Oct 14, 2009.

  1. D_Ireonsyd_Colonrinse

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    Dow Closes Above 10,000 For First Time In A Year


    I'm really not trying to be overtly political here.

    I just wanted to throw this out there. It seems worth mention at the very least. Seems more positive than not regarding getting the health of the nation's economy back on track.


    Of course, Obama will get little to no credit for this from our LPSG resident panel of financial experts.


    From the Associated Press:

    The Dow closed above five figures Wednesday, seven months after it hit a 12-year low of 6,547.05 on March 9. The comeback by the stock market’s best-known indicator is the most visible sign yet that investors believe the economy is indeed recovering from the financial crisis and recession.


    Notice the graph. In the latter part of 2007, the Dow starts a disastrous, precipitous fall from 14,000 to 6,000 and something.


    Dow closes above 10,000 for first time in a year - Stocks & economy- msnbc.com
     
  2. B_ace3316

    B_ace3316 New Member

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    WOO HOO... wonder if this means things are finally starting to turn around.
     
  3. gingernuts

    gingernuts Member

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    It is worth noting, but not likely to have much impact, a bit like the Pope having a hard'on. Papal stiffies dont lead to babies.
     
  4. B_Nick4444

    B_Nick4444 New Member

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    perhaps because he had nothing to do with it -- that's why they're call economic CYCLES

    (BTW, I'll refrain from posting why your celebration may be premature)

    Enjoy! Cheers!
    :beerchug2:
     
  5. JustAsking

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    My prognostication is that the Dow will bounce off the 10,000 ceiling for a while before it breaks through (if it is going to break through). How many here are tempted to take some profits? If you have that urge, others will, too.

    However, I think this is a good sign even though some of it is fueled by the good performance of the financial sector in some kind of cruel irony as they squander their bailout money.

    Finally, I have no idea what will really happen. This is just my wildass guess.
     
  6. Flashy

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    wow...look at all those evil corporations driving the market up...:rolleyes:

    surely we can do better than this terrible capitalist system!

    this is all institutional buying, and has been for months...once again, the little nibblers will now come in, thinking it's safe again, while the insititutional money starts taking profits. joe schmo buys high, then wonders why it drops out from underneath.


    this was nothing more than some exuberance on earnings from two of the strongest companies in their sectors.

    most other companies are *NOT* going to have these types of results.

    60% of the trading that has been driving us up is high frequency, institutional and program trading.

    the number means nothing. when the market gains 50% in a few months, and the economy is not following, it is overbought.

    none of the structural problems in the market have changed one iota.

    most people are still broke and have little to invest. stocks are overvalued and have been bought at lows by institutions, and based on a healthy profit over the past few months, they will close out their positions slowly.

    10,000 is a number, nothing more.

    i was on the floor of the Chicago Mercantile Exchange in 1995 when the Dow hit 5,000.

    it is like your 50th birthday...a nice, if utterly meaningless point on a graph.
     
  7. sargon20

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    Cycles my ass. If BIG government hadn't stepped in to rescue capitalism we would be in a full scale depression. And every thinking economist knows it.
     
  8. Flashy

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    i have been taking profits for weeks on my longer term positions.

    i am close to all cash at the moment, waiting to see how many more people are cashing out.

    everyone i know has been cashing out slowly as well, and is waiting to see what happens with several things going forward.

    as such, i am hedged with a lot of index options and put options on the few remaining stock positions i have left, just in case.
     
  9. D_Ireonsyd_Colonrinse

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    Flashy, you seem to be making some fine, sensible points on why this country needs to be founded on some very basic socialistic safety nets.

    We all have the sinking feeling in the pits of our stomachs that this era of "too-big-to-fail" capitalism is going to get worse, not better.

    Meaning Big Business looking out for its own bottom line, its own profit motive, and, like the heathcare insurance companies screwing the consumer on one hand, all while pretending not to and benevolently helping them out on the other.


    We need permanent european-style safety nets. Like a strong public option for starters.
     
  10. B_VinylBoy

    B_VinylBoy New Member

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    That's good... and we'll refrain from posting why your hypocritical response on the subject matter was not only predictable but insanely laughable.
     
  11. JustAsking

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    Thanks flashy. I think I need to go to cash, too.
     
  12. Flashy

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    oh what are you, a fortune teller?

    and we *DO* have safety nets...or have you not heard of social security?


    and nowhere did i make any case for some absurd socialistic safety nets beyond anything more than social security and health care.

    you are the one who has a problem with capitalism.

    nowhere did i make a single point about any type of socialistic reforms...and how does this country need "to be founded on some very basic socialist safety nets."

    this country was already founded, over 2 centuries ago, and nowhere were socialistic safety nets listed as part of that founding.

    you seem to have an absurd need to destroy all the elements of our system that allowed us to actually get to where we are, where you can now complain about what you demand, but don't have.

    this country already has more than enough safety nets. health care reform is needed and that is it...however your absurd diatribe, somehow taking my informed views on the stock market, then promptly dragging the health care debate into it, are just so typical of your shallow and obvious intentions in starting this thread.

    just so you could rail against capitalism again.

    you can stick your european style safety nets up your ass.

    because we cannot *AFFORD* the public option under the current plans.

    it is easy for someone like you to whine about what you want, but have absolutely no way or strategy to actually *PAY* for it.

    when you come up with a way, to get a strong public option, without massive tax hikes on the middle class, which are coming, in addition to tax on higher earners, you tell me about it.

    until you do, stop blathering about reform that you cannot pay for, but you still demand.

    the free lunch is *OVER*.

    this country is bankrupt.

    so get over it.
     
  13. Drifterwood

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    Also thanks Flash.

    I am in the Far East and the general feel from US corps is that things are still very tough and profits will be hard to come by. They are also talking of the RMB strengthening by 25% in the next 5 years, which will be interesting, as will the programme for an Asian $ promoted by Japan.
     
  14. D_Rod Staffinbone

    D_Rod Staffinbone Account Disabled

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    still a good time to buy, though march '09 was better. the world is in a retooling mode and there are some good opportunities out there.

    laugh if you must, but on 9 november 2008 i recommended, in a post, that lpsg members get together and buy enough ford motor stock at $2.00 per share to take over the company. ford closed today at $7.66 per share. a $10,000 investment then would put you at $38,300 today (ford was even as low as $1.01 per share within the past year, a 766% gain.
    the same $10,000 investment at $1.01 per share would put you at $75,842 today.)

    beats the rate on a 3% CD, if you know where to stick it.

    BUY LOW, SELL HIGH (AND DON'T BE GREEDY, SELL WHEN YOU'VE TURNED A DECENT PROFIT).
     
    #14 D_Rod Staffinbone, Oct 14, 2009
    Last edited: Oct 14, 2009
  15. Flashy

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    yeah, nobody i know in the markets here is very confident about US Corporations profit margins, overseas revenues or anything else for that matter. normally, my friends at hedge funds and traders tend to take less of a long term view, since basically, they are in, like me, most of the time for short term moves...but all my friends on the sell side or who are analysts/ institutional types are really pessimistic and worried about US corps profits going forward.

    as for the RMB, i see no reason to believe it wont strengthen considerably, considering how precarious our situation is with the dollar, and considering how little drag China as in terms of social spending eetc in regards to economic output. when you have a large section of labor at such low cost, like china, you can navigate a difficult time like this much better...they are going to be even stronger going ahead...

    i have never in my life been so worried about the long term health of the US economy and the dollar.

    we are bankrupt, and all these clowns in Washington cannot seem to *STOP SPENDING MONEY WE DON'T HAVE*

    i have never seen anything like this before.

    never.

    it is just beyond irrational, and comes mostly from the totally unaware masses of people such as willtom, who have absolutely no clue about what lies ahead.

    sure just throw another trillion dollars at another problem...i swear, these types spend money like my sister....just no clue about where it comes from, if there will be enough in a month, and zero interest in understanding that one day, the spigot will run dry.

    we are pretty much right there now.

    i am not looking forward to what comes next...i do not really want to think about it, frankly.
     
  16. B_Nick8

    B_Nick8 New Member

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    Psychologically and in terms of consumer confidence it's very good news especially going into the holiday retail season.
     
  17. sargon20

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    Confidence is somewhat self-fulfilling ne c'est pas?
     
  18. B_Nick8

    B_Nick8 New Member

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    It is, which is why I'm less concerned with what inspires it than that it is.
     
  19. HazelGod

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    BFD. Look around you...only Wall Street is in full recovery, whilst most of the rest of the nation remains in the ICU.

    The more things change, the more they remain the same. :rolleyes:
     
  20. Trinity

    Trinity New Member

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    As much as I hate to say it...

    What he said. :rolleyes:
     
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