Did We Go Up 277 Today?

[pktruckdriver]

What's that mean up 277 points today?? Did lots of people make money today?


I will start to worry when it (if) gets below 8000 or so, right??



Where was it when Bush came in and Clinton went out?


Maybe I should trade instead of play, actually my play needs help, but I am getting help to play, anyone willing to teach me to trade? I've the mind of a...



Let me know, will things get better,and when, will fuel ever go back down?

Will I ever hit a pick 6, twice in 1 week? Or 4 pick 4's in 1 week?


Ok let me know, when I went too far, trusting this Government, when was it ever trust worthy? I ask a the government says all is well, but why are things getting worse for me, and the other truckers out here supplying America with everything it uses daily, Why? Without use things could get unpleasant.


That's All

[Marshall Bennett]

Expect tomorrow to go down the same . :D

[RaceBookJoe]

Something to remember is that the Dow is made up of only 30 stocks. On top of that, it is a cap-weighted index.....meaning the Dow can still go up even if the majority of stocks in the index goes down ( a political analogy would be with presidential elections and electoral votes as opposed to popular votes/states won ). Same thing happened with the "Tech Bubble" crash of 2000-2002. The majority of stocks started the downslide in 1998. That is another reason why people who were "diversified" like they had always been instructed didnt make the spectacular gains from 98-00 like the smart money did......you had to diversified in the strong stocks, which werent really that.
Only about a dozen or so stocks were keeping things screaming higher. You can almost still hear the echo of the chants...."QUAL - COMM QUAL - COMM" or "J D S U" clap clap clap clap clap. The point is that this market is tough to figure and the losing position is to get happy when it goes up and sad when it goes down. Before you invest in a stock, learn the fundamentals of the underlying company and then learn technical analysis for better timing of your entry and exit points. For traders, you need to find the catalyst that will make your stock move in the direction you play it...earnings report, splits, fda approval etc. Just be careful, it is easy to get whip-sawed in this market. I wish everyone the best during these wild times. rbj

[ddog]

Nice points RBJ!


Spoken like a pro.


Times a are wild , but so far fun as well.

:)

[DJofSD]

I believe there are 3 components of the DJIA that will be reporting earnings tomorrow either before or after the trading day. GOOG will also be reporting.

My estimation is the market will have to see huge beats on earning estimates. I doubt they'll get those beats. The DJIA will fall as a result.

[RaceBookJoe]

I believe there are 3 components of the DJIA that will be reporting earnings tomorrow either before or after the trading day. GOOG will also be reporting.

My estimation is the market will have to see huge beats on earning estimates. I doubt they'll get those beats. The DJIA will fall as a result.

You can always play a straddle if you expect a big move either way. I dont try to guess what is going to happen , to me that is hard. I find it much easier and a lot less stressful to see what is actually happening and try to tag along. rbj

[DJofSD]

I'm familiar with the straddle in concept only. Too "chicken" to actually try it since I'm unclear about the amount of potential "loss" if it goes "against" me. I have read a number of articles and books about options trading. If I had a tool to model real world examples -- paper bets -- to confirm my understanding of the basics before actually jumping in, I'd likely have enough confidence at the point to actually play the game that Peter and Jon excel at.

[Valuist]

DJ-

I was at work all day and forgot to record Fast Money. What was the driver for the big gain? I bought some GS the other day and I see most of the financials went parabolic, at least for a day. But I also saw Chesapeake and other NG companies took another beating. Was it all due to Bernanke's comments? I suspect some of the gains were due to short covering, especially with the SEC claiming to crack down on the naked shorts.

[RaceBookJoe]

I'm familiar with the straddle in concept only. Too "chicken" to actually try it since I'm unclear about the amount of potential "loss" if it goes "against" me. I have read a number of articles and books about options trading. If I had a tool to model real world examples -- paper bets -- to confirm my understanding of the basics before actually jumping in, I'd likely have enough confidence at the point to actually play the game that Peter and Jon excel at.

DJ.....your potential loss is the amount you pay for the put/call. On a straddle one goes up the other down....works well on big moves, the hard part is knowing if a big move is going to happen. I have gotten the best results on straddles from earnings releases on high priced stocks and also when the Fed meets to raise/lower rates. rbj

[RaceBookJoe]

DJ-

I was at work all day and forgot to record Fast Money. What was the driver for the big gain? I bought some GS the other day and I see most of the financials went parabolic, at least for a day. But I also saw Chesapeake and other NG companies took another beating. Was it all due to Bernanke's comments? I suspect some of the gains were due to short covering, especially with the SEC claiming to crack down on the naked shorts.

Wells Fargo had a nice earnings surprise which helped. rbj

[DJofSD]

Valuest - rbj pretty much hit the FM nail on the head. I believe there is a part of FM available on the CNBC web site.

Macke has not very much patience left when it comes to MSFT. Guy seems to be hitting on on cylinders for the last 3-4 weeks. Guy is still hot on GILD. K Fine is still cautious while Pete is trading some of the financials.

I detect a bias on FM -- while Larry has about three words in his vocabulary right now, namely, drill, drill, drill, Dylan avoids at all cost any discussion of the jawboning by Bush and the gauntlet he's laid before Congress.

[highnote]

Today's rally probably had a lot to do with the shorts covering their positions.

[Valuist]

DJ-

You're right. They (FM) have the show broken down into about 5 different downloadable segments. Sounds like Wells Fargo got things started, and I'm sure profit taking by the shorts was part of what pushed the market up higher.

Should be interesting today. I just heard JPM blew away estimates so the financials might have another big day or two ahead.

Dylan tries to keep politics out of the show, probably because Kudlow has such an emphasis on politics in his show.

Watch ELN the next few weeks. I saw a doctor interviewed last spring and he was absolutely giddy about ELN and Wyeth's new Alzheimer's drug. They are supposed to report trial results in the last week of July and it could explode or implode. The price action in ELN the past few months leads me to believe the results will be positive.

[lamboguy]

ear CIGAs, Do not believe the incredible parade of good tidings from the Fed and the Treasury when the credible is starring you square in the face.

Many still need to protect themselves, and this is welcomed opportunity for them to do so.

We did hit $990 on the upside which suggests the downside is within reach of the present levels at $940 to $950.

Toughen yourself to the volatility of the market place. Charts are being painted and you are being played.

Quality junior gold shares are reaching a point from which an expectation of 1000% or more on the upside is not out of the question.

Gold is headed to $1200 this year and $1650 in time. The US dollar will trade at .62 and .52 on the USDX.

Today is part of the Greatest Show on Earth with a sideshow of Believe it or Not. The answer is NOT.

Gold has major support between $940 and $950. That should be it on this reaction. We shall see as I have only had two sessions to come up with an answer.

Regardless, nothing has changed and today was officially full of talking head madness.

Respectfully yours,
Jim

[Valuist]

Something to remember is that the Dow is made up of only 30 stocks. On top of that, it is a cap-weighted index.....meaning the Dow can still go up even if the majority of stocks in the index goes down ( a political analogy would be with presidential elections and electoral votes as opposed to popular votes/states won ). Same thing happened with the "Tech Bubble" crash of 2000-2002. The majority of stocks started the downslide in 1998. That is another reason why people who were "diversified" like they had always been instructed didnt make the spectacular gains from 98-00 like the smart money did......you had to diversified in the strong stocks, which werent really that.
Only about a dozen or so stocks were keeping things screaming higher. You can almost still hear the echo of the chants...."QUAL - COMM QUAL - COMM" or "J D S U" clap clap clap clap clap. The point is that this market is tough to figure and the losing position is to get happy when it goes up and sad when it goes down. Before you invest in a stock, learn the fundamentals of the underlying company and then learn technical analysis for better timing of your entry and exit points. For traders, you need to find the catalyst that will make your stock move in the direction you play it...earnings report, splits, fda approval etc. Just be careful, it is easy to get whip-sawed in this market. I wish everyone the best during these wild times. rbj

Memories of seeing QCOM and JDSU every third trade as they ran across the crawl on CNBC's screen. I think QCOM ended up splitting 4 for 1......I seem to remember seeing it at $1000/share at one point. And look at JDSU now.....a shell of what it used to be.

And how about that $1000 target for Amazon? Not in our lifetimes.

[skate]

IMO, reality of the economy, It's very strong.

Doesn't mean "no Problems".

Fuel is a situation on the mend, cut in usage and talks with Iran could flood the Market with fuel. $1.50 is possible.

2 Q, Gdp, will prompt an upswing. Big time... diddy.:cool:

[RaceBookJoe]

Memories of seeing QCOM and JDSU every third trade as they ran across the crawl on CNBC's screen. I think QCOM ended up splitting 4 for 1......I seem to remember seeing it at $1000/share at one point. And look at JDSU now.....a shell of what it used to be.

And how about that $1000 target for Amazon? Not in our lifetimes.

It was like shooting fish in a barrel. Stocks moved 30,40 points in a day. I made a few really nice hits on stocks that i wouldnt touch today...even with your account hahaha. jdsu and rmbs paid my mortgage. BLK was up 29 points today...unfortunately I didnt have it. I spend more time handicapping than doing stocks during the summer, but I still keep my eye on things. rbj

[Valuist]

It was like shooting fish in a barrel. Stocks moved 30,40 points in a day. I made a few really nice hits on stocks that i wouldnt touch today...even with your account hahaha. jdsu and rmbs paid my mortgage. BLK was up 29 points today...unfortunately I didnt have it. I spend more time handicapping than doing stocks during the summer, but I still keep my eye on things. rbj

The roughest thing about that 2000-2002 period was the bear market rallies. I remember shorting some stocks for awhile in late 2000 and early 2001 but the bear market rallies were so fierce they'd force one to cover, thinking that the market had bottomed. I hope the current slowdown/recession doesn't last as long. Have to think the recent financials rally is a textbook example of a bear market rally, driven largely by short covering.

[RaceBookJoe]

The roughest thing about that 2000-2002 period was the bear market rallies. I remember shorting some stocks for awhile in late 2000 and early 2001 but the bear market rallies were so fierce they'd force one to cover, thinking that the market had bottomed. I hope the current slowdown/recession doesn't last as long. Have to think the recent financials rally is a textbook example of a bear market rally, driven largely by short covering.

This is going to come across sounding easier to do that sometimes it is in reality, but there are 2 things I try to do in those times. First, If the market is going down....I mainly play the downside. Second I use shorter term indicators for my timing. Basic stuff like trend lines,moving avgs,macd etc. Technical analysis is more important to me in those times. Plus, because so many traders follow these things like trend lines,ma's...they kind of become a self-fulling thing. rbj

[RaceBookJoe]

Just a correction to something I posted in post #3 of this thread. The Dow is not cap-weighted, it is a price-weighted index. The other main indices are cap-weighted. Sorry for the error. rbj

[Valuist]

I agree that focusing on the downside can be easier. I was doing alright with it until probably late 2001 when one too many bear market rallies had me thinking the market had bottomed. But as it turned out, 2002 was still a lousy year for the market. I know TA much better now than I did back in 2001 and I know there really wasn't reason to think the market had bottomed. Kind of like now; I'm not buying into this financial rally as anything more than a short term bear market trading rally. I just re-shorted Capitol One today.

[RaceBookJoe]

Anytime I play the downside, i ALWAYS use puts ( usually in-the-money ). This way my max loss is already known. Shorting can be scary, especially if you are wrong and cant get out. One bad loss can wipe away a lot of wins. rbj

[barn32]

Shorting can be scary, especially if you are wrong and cant get out. One bad loss can wipe away a lot of wins. rbj

You can never lose more on the short side than you can win on the long side.

[RaceBookJoe]

You can never lose more on the short side than you can win on the long side.

I am assuming that you have never shorted a stock. You can lose more than you have, and not only that, be forced out with a loss. You cant hold a short forever, you will get called on it. Not to mention paying dividends also. You can buy a stock and be optimistic that it will keep going up, but not one stock has ever gone to infinity. Seems like you might have a lot to learn, and by the looks of your statement, learn the hard way. rbj

[RaceBookJoe]

I agree that focusing on the downside can be easier. I was doing alright with it until probably late 2001 when one too many bear market rallies had me thinking the market had bottomed. But as it turned out, 2002 was still a lousy year for the market. I know TA much better now than I did back in 2001 and I know there really wasn't reason to think the market had bottomed. Kind of like now; I'm not buying into this financial rally as anything more than a short term bear market trading rally. I just re-shorted Capitol One today.

Instead of Cap One, too bad you didnt have a bunch of puts on GOOG!!!!! rbj

[Valuist]

Instead of Cap One, too bad you didnt have a bunch of puts on GOOG!!!!! rbj

Good point. I was thinking about shorting AAPL also. They report next week (Monday I believe) and when you look at the other big tech who's reported lately, GOOG, MSFT, RIMM, they all sucked. GOOG and RIMM were taken out back, shot and left for dead. Maybe the new iPhone will keep AAPL out of the crapper but unlike some of the talking heads, I'm not bullish on tech and considering the guidance RIMM and GOOG gave, a miss by AAPL wouldn't be a shock.

[skate]

Good point. I was thinking about shorting AAPL also. They report next week (Monday I believe) and when you look at the other big tech who's reported lately, GOOG, MSFT, RIMM, they all sucked. GOOG and RIMM were taken out back, shot and left for dead. Maybe the new iPhone will keep AAPL out of the crapper but unlike some of the talking heads, I'm not bullish on tech and considering the guidance RIMM and GOOG gave, a miss by AAPL wouldn't be a shock.

Don't forget "IBM" and "Intel". Economy is Very Strong. time to take breather for the bears. Many strong sales reports coming in of late.


Down side, maybe 5%. Up side is 25%/30%.

[pktruckdriver]

SKATE NO WAY YOU CAN BELIEVE THIS, COME ON.



Fuel is a situation on the mend, cut in usage and talks with Iran could flood the Market with fuel. $1.50 is possible.



As a truck driver who living is affected with the cost of fuel prices, to think it will ever get back to 1.50 is absurd, definetly welcomed, but absurd noen the less. As then I could maybe make some money for a change again.