Dow Jones Opens At All-Time Highs

Tyler Durden's picture

On October 11th 2007, the 'old' Dow Jones Industrial Average reached its previous all-time high of 14,198.10 (with the all-time closing high of 14,164.5 on October 9th) as plans for the MLEC were rumored to save the world from the intensification of stress in the interbank funding markets. A week later, the Dow had dropped 5.5%; a month later it had dropped 8.5%; three months later it had slumped 18%. But, this time the 'wealth effect' will be different-er.

 

 

and what brought us here... from the Oct 2007 highs... remember this is not the same Dow as it was back then...

 

Finally, when priced in non-dilutable hard money, i.e., gold, this is what the
DJIA looks like:

 

Chart: Bloomberg

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fuu's picture

Fuck you Bernanke!

Eireann go Brach's picture

Patience Grasshoppers! Obamas legacy will be written soon!

MillionDollarBonus_'s picture

The global recovery is accelerating. Many stock investors have been made wealthier than their wildest dreams. You have to understand, some of these stock investors are highly leveraged, so when the S&P rockets by 100 points, they are making a small fortune. It's pretty damn awsome when you think about it.

kliguy38's picture

Meanwhile peeps have another maggot infested bowl of gruel to go with your molded bread......while we suck the last dripping of caviar off our silver spoon.

Pegasus Muse's picture

FBI Warns Sequestration Will Hamper All Their Hard-Hitting Wall Street Investigations

What a crock.  When in the last decade has the FBI done any hard-hitting investigations of any Wall Street ScumBag?

Jon 'thieving bastard' Corzine, anyone?

 

fourchan's picture

lol congrats to all who bought the fucking dip, suckers.

Son of Loki's picture

Better buy now......before it falls, right?

 

"There's never been a better time to buy then now," my agent is still yapping. "you don't want to be priced out of the market, do you?"

 

...and so on....

 

People don't make money advising you not to buy, do they?

Thought criminal's picture

Make a lecture about leverage for us, please. And don't forget to put a picture of a lever in it.

GetZeeGold's picture

 

 

Remain calm.....all is well.

Shizzmoney's picture

It's not going to get better until the thing starts to crash.....and it ain't crashing soon.

El Oregonian's picture

It only gets bitter from here...

DaveyJones's picture

like the beer?

they are hopping around to try and preserve intoxication

Lost Wages's picture

Keith McCullough currently masturbating himself to death.

Confundido's picture

Gold was slammed down again at 8:30am, to prevent it from getting to $1,600/oz...Thou.shall.sell.your.gold!

DblAjent's picture

Cramer is orgasmic right now, along with the CNBC squawks barely containing their excitement/

DaveyJones's picture

please get that image out of my head

(I see the new drone downvoter is loose)

thismarketisrigged's picture

dont we all feel so rich now?

 

lets all go buy yachts .

 

dont worry, these criminals will take the all time s&p high out very soon bc its clearly controlled.

 

fuck u all fed and obama, wish nothing but the worst on u,

 

also, fuck jim cramer, he is on cnbc basically mocking all the nay sayers and saying how great things r. fuck him also

lakecity55's picture

Man, this is really phony.

GetZeeGold's picture

 

 

Looks like the 1st amendment is holding.....for now.

DaveyJones's picture

govt just again denied the existence of the drone program in court filings

they're controlling the hell out of info on of the Manning trial proceedings

and then of course, the coup de tat, SCOTUS dismissing the lawsuit by journalists on the unconsitutional tracking and searching of these journalists (and many others) ecause, without a govt release of the information on these journalists, they could not prove "standing"

Even Orwell would be impressed 

The first (and 4th) Amendment have fallen so fast in ten years

Confundido's picture

 

Good economic data = stocks up, gold down Explanation? rotation, no need to own the "safe haven" asset Bad economic data = stocks down, gold down Explanation? Margin calls, liquidity needs So so economic data = dividend stocks, bonds up, gold down Explanation? Gold doesn't pay a dividend More QE? Gold down! Explanation? Why own gold when stocks will outperform? Or another one: Deflation is coming. No need to own gold No QE? Gold down! Self explanatory

 

W74's picture

Did you learn to read and write at all?  Please try to construct sentences and use capital letters.  Do you also speak primarily in the form of questions?

Kaiser Sousa's picture

FUCK THE DOW...

FUCK THE S&P...

FUCK THE PHONY PAPER PRICE OF THE ONLY 2 FORMS OF REAL MONEY...

AND YES MY FRIENDS - FUCK BERNANKE AND ALL YOU OTHER SOCIOPATH MOTHER FUCKING BITCH ASS COCKSUCKER BANKERS.........

 

now, i patiently await the reckoning....

Confundido's picture

You will have to be very, very patient...

JPM Hater001's picture

There are at least 40 to 500 more people he can say fuck you too so at least he has something to do in the mean time.

I've noticed the anger phase much more lately. Again, I would like to hear from ZH what subscriber base is doing...lots of new names every week.

fuu's picture

New names, same posters though.

SAT 800's picture

And you know this how? Crystal Ball?

Kaiser Sousa's picture

"You will have to be very, very patient......"

no my friend...

just look around you as you meander thru your streets - your town...

it is staring you right in the face......

swissaustrian's picture

- > 10000 by year end

-> 18000 by year end

Sweet Chicken's picture

You're referring to the price of GOLD correct?! 

JPM Hater001's picture

<---- dollar makes it to year end
<---- dollar toast by year end

Hard to quantify Dow in toast terms

astoriajoe's picture

Oh, I don't know...

How many contracts of ES will it take for me to eat breakfast? That seems pretty easy.

Sudden Debt's picture

If you blast a pig in the air with a big canon.... for some time... you could say.... IT FLIES!!!!

SAT 800's picture

Very true; and not a bad analogy. How's things in the land of waffles and cherry beer?

Hohum's picture

It is different this time.  Sure, economic indicators are worse than 2007.  However, the Fed wasn't buying 85B in securities every month.

polo007's picture

http://en.wikipedia.org/wiki/Price-weighted_index

A price-weighted index is a stock market index where each constituent makes up a fraction of the index that is proportional to its price. For a stock market index this implies that stocks are included in proportions based on their quoted prices. A stock trading at $100 will thus be making up 10 times more of the total index compared to a stock trading at $10. This is different from a market weighted index where stocks are included based on the equity market values of the underlying companies, i.e. the quoted stock price multiplied by the number of shares outstanding.

The development of a price-weighted index will not accurately reflect the evolution of the underlying market values. This is so because the $100 stock above might be that of a small company and the $10 stock that of a large company. A change in the price quote of the small company will thus drive the price-weighted index (as it makes up a large part of the index) while the combined market values will remain relatively unaffected without changes in the price quote of the large company. Moreover, constant rebalancing needs to take place. The quoted price for each stock used in the calculation of the index is redefined so that each index constituent has an appropriate weight in the index at each rebalancing date. An Adjustment factor is introduced to a stock, that is assigned to the stock at each rebalancing date, which allows for price weighting. For index component, the value would be[1]:

Adjustment Factor= Index specific constant "Z"/(Number of shares of the stock*Adjusted stock market value before rebalancing)

The Dow Jones Industrial Average and Nikkei 225 are examples of price-weighted stock market indexes.

Spastica Rex's picture

Drug induced priapism.

ebworthen's picture

"Welcome to the Wall Street Circus!  Peanuts!  Popcorn!  Cotton Candy!"

That DOW priced in Gold chart is priceless.

SAT 800's picture

Discounted for inflation, of course, it is not the "same value" as it was last time; anymore than Gold was the "same price" at 800$; as it was in 1980. But it does make a better story if you pretend it's the same price.

fuu's picture

The shitty BLS Inflation Calculator says 15,768.82 is the new 14,198.10

moneybots's picture

"You have to understand, some of these stock investors are highly leveraged, so when the S&P rockets by 100 points, they are making a small fortune. It's pretty damn awsome when you think about it."

 

It is pretty awsome that leverage increases losses.  All of the investment banks crashed after they got leverage waivers.  The two Nobel Lauriates who founded Long Term Capital Managment, thought they had a perpetual money making machine.  They found out otherwise when the market turned and suddenly they were racking up HUGE  losses.  Fear became that LTCM could crash the entire financial system. 

How quickly people forget the damage done by a bubble, when they have a new one to chase and be damaged by.

SAT 800's picture

Short again on the ES contract from 1536; I just happened to be awake this morning and saw it tick so I nailed it. I got off last time at a zero loss. This process of continually shorting new highs probably seems very strange to most of you; it's a proven strategy; sooner or later, I'll be right and then I'll make a lot of money; we all know the underlying requires a much lower price and reality will prevail; therefore I have quiet confidence and keep shorting.

moneybots's picture

"It is different this time.  Sure, economic indicators are worse than 2007.  However, the Fed wasn't buying 85B in securities every month."

 

No, it isn't really different this time.  IBD is showing numerous distribution days on their market charts.

tawse57's picture

The question now is just how much more they will pump it? I suspect Bernanke wants his legacy to be able to say that he over-saw the DOW and S&P 500 at record highs...

Throw in the 85 billion to go along with his ego and it would not surprise me to see a few hundred more points higher on the DOW yet.

I am a bear. I want this thing to crash. I have been waiting for it to crash but I can't see any sign of it doing so for a few hundred points more yet.

Shizzmoney's picture

I want this thing to crash. I have been waiting for it to crash but I can't see any sign of it doing so for a few hundred points more yet.

If you are a fan of liberty, you want this thing to crash.  If you are a fan of peace, you want this thing to crash.  If you want the death of fascism, neoliberalism...you want this thing to crash.

Unfortunately, it probably won't until 2015.  They have about 1-2 years left of policy manuevers and money printing and can kicking until reality finally sets in.  Nevermind all of the suckers in pensions, 401Ks, and older investors who continue to buy stocks and take out loans and believe the shit that's fed to them by CNBS.

It may take quicker....but that will be due to social unrest/wars popping up out of nowhere.