Stock market rises on news from Europe

[horses4courses]

The Dow, Nasdaq, and S+P all rose around 2% today due to news from Europe.

Europe rallies (http://www.npr.org/2012/09/05/160603204/stocks-get-bounce-from-europe-focus-turns-to-jobs?ft=1&f=1001&sc=tw&utm_source=twitterfeed&utm_medium=twitter)

[lamboguy]

i guess there isn't any interest in gold these days because the commercial shorts have declined from 230,000 contracts down to 160,000. but there are so few people that own the stuff, i think there is plenty more room for that market to run to the upside.

[PaceAdvantage]

It's about time this market did something...stuck in a rut was an understatement these past few weeks...

[sammy the sage]

As predicted...printed bail-out money...markets go up...EASY trade...this time curtesy of THE Euro's...

At some point tho...it won't work....3 months from now or 3 years...who knows...just get in and get out quick...whilst it does..

[highnote]

It's about time this market did something...stuck in a rut was an understatement these past few weeks...

summer doldrums, probably. NYSE Up volume is the biggest since July 27.

Up volume to Down volumn ratio was 13-1 today. 9-1 is a buy signal according to Martin Zweig. The ratio was 16-1 on July 27. The S&P is up 50 points since then.

Interest rates are low and don't appear to be going up until after the election. VIX is down around 9 -- it was 45 a year ago.

Quantitative easing on the horizon.

All these things point to a rising market. Not to mention inflation. Stocks should keep ahead of inflation. So if you don't own gold, stocks are a good alternative. Probably better to own both.

[elysiantraveller]

Agreed.

This news from the ECB though isn't really news and ultimately who holds the bag on these swaps needs to be ironed out. Its a great stand of solidarity but solves very little.

I'm going with a 10% correction within the next 3 months.

[Valuist]

i guess there isn't any interest in gold these days because the commercial shorts have declined from 230,000 contracts down to 160,000. but there are so few people that own the stuff, i think there is plenty more room for that market to run to the upside.

I agree with you. Could get a worldwide recession in 2013. Not only is the dollar a joke, but so is the Euro. Gold has had a year to consolidate. If Obama is re-elected, we will see a spot price of $2500/ounce during the next 4 years.

[Tom]

The market is no barometer for a successful economy.
Obama said so.....when it was in the tank. :lol:

[Valuist]

The market is no barometer for a successful economy.
Obama said so.....when it was in the tank. :lol:

Agreed. All that ridiculous money printing had to go somewhere and it ended up in equity markets. Ironically, who benefitted from that? Those at the higher ends would be more likely to be invested and the beneficiaries.

[lamboguy]

I agree with you. Could get a worldwide recession in 2013. Not only is the dollar a joke, but so is the Euro. Gold has had a year to consolidate. If Obama is re-elected, we will see a spot price of $2500/ounce during the next 4 years.it really doesn't matter who gets elected as far as gold goes. the republicans wanted to put it in their platform to go back on the gold standard. if that's real, and i highly suspect it is, $2500 gold ain't nothing.

in case you do buy gold, make sure its the real thing baby, not gld or any other form of paper gold.

[Valuist]

it really doesn't matter who gets elected as far as gold goes. the republicans wanted to put it in their platform to go back on the gold standard. if that's real, and i highly suspect it is, $2500 gold ain't nothing.

in case you do buy gold, make sure its the real thing baby, not gld or any other form of paper gold.

GLD is more liquid. If for reason, even if its unlikely, gold tanks, its easier to get out. IF gold tanks, it tanks big-time. I own GLD and GDXJ (junior miners). And if one is in a situation where they HAVE to sell the physical bullion, you have to figure you aren't gonna get anywhere near what it would normally be worth.

[lamboguy]

GLD is more liquid. If for reason, even if its unlikely, gold tanks, its easier to get out. IF gold tanks, it tanks big-time. I own GLD and GDXJ (junior miners). And if one is in a situation where they HAVE to sell the physical bullion, you have to figure you aren't gonna get anywhere near what it would normally be worth.i have been thru this already back in the late 70's before ETF's were a dream. i was buying and selling gold throughout the whole run, there was never a problem selling it. as far as silver went there wasn't a problem with that unless you had silver that wasn't .9999. if you had 40% or 90% silver you were getting screwed all over the place and that is what i think you are thinking about.

paper gold is NOT the same as real gold. real gold is an insurance policy, GLD is a gamble on the market. the way i have played this run is i have held the metal and when i thought it was going down or consolidating i shorted GLD and DZZ against my holdings. in the last 12 years i have never been a net short on any given day on gold. i don't like shorting something where the surprises are going to be to the upside.

[lamboguy]

interesting that after the convention's Smith and Wesson, a gun manufacturer, is up 14% today. people must be buying their guns now.

[Tape Reader]

in case you do buy gold, make sure its the real thing baby, not gld or any other form of paper gold.

This statement is becoming truer each day. Recent articles in the WSJ point out the mistrust for commodity houses and contracts. Brokers and traders are fleeing the market like the plague. The MF Global fraud and now Peregrine. Add to that, speculators are now walking away from cotton contracts.

I own the physical and trade DGP, but I do have a sense of nervousness when holding DGP. Another reason to own the physical.

[PaceAdvantage]

Putin is loading up...must have been talking to lamboguy lately:

http://www.marketwatch.com/story/why-is-putin-stockpiling-gold-2012-09-05

[lamboguy]

This statement is becoming truer each day. Recent articles in the WSJ point out the mistrust for commodity houses and contracts. Brokers and traders are fleeing the market like the plague. The MF Global fraud and now Peregrine. Add to that, speculators are now walking away from cotton contracts.

I own the physical and trade DGP, but I do have a sense of nervousness when holding DGP. Another reason to own the physical.owning paper gold is like walking around in Antartica stark naked.

[lamboguy]

Putin is loading up...must have been talking to lamboguy lately:

http://www.marketwatch.com/story/why-is-putin-stockpiling-gold-2012-09-05that makes me sick to my stomach. Obama is giving the stuff away at these prices, if the chineese and Putin want the stuff, at least make them payup for it.

[lamboguy]

This statement is becoming truer each day. Recent articles in the WSJ point out the mistrust for commodity houses and contracts. Brokers and traders are fleeing the market like the plague. The MF Global fraud and now Peregrine. Add to that, speculators are now walking away from cotton contracts.

I own the physical and trade DGP, but I do have a sense of nervousness when holding DGP. Another reason to own the physical.
http://www.youtube.com/watch?v=1_BJ8PlWFvg&feature=relmfu