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Dow Jones At New All Time Highs - Here's Why
Curious why the Dow Jones Industrial Average just hit new all time highs? Here's a partial list of recent economic events:
- Markit US PMI Miss
- ISM Manufacturing Miss
- ISM New York Miss
- Vehicle Sales Miss
- ADP Employment Miss
- ISM Services Miss
- Challenger Job Cuts Miss
- Initial Claims Miss
- Trade Balance Beat
- Non-Farm Payrolls Miss
- Hourly Earnings Miss
- NFIB Small Business Miss
- Wholesale Inventories Miss
And that's ignoring the absolute economic collapse in Europe, the Chinese slowdown, and the Japanese economic basketcase.
What is there to even say anymore: Stalingrad 4 Eva! Remember: central planning works.
and if pictures are better than words...
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QE to hell and back.
I Miss the point?
Most people do not understand real versus nominal returns.
If you have a share of XYZ that is valued at $100, and the value of the dollar decreases by 50%, then the share of XYZ is now valued at $200, eventhough the underlying value of the XYZ company did not change.
Stock indices like the DJIA are measured in dollars.
If we shorten the length of a mile, then Dallas is farther a way, but only in miles.
Like I wrote below, Bernanke said as much at his last press conference.
go away
When this bubble pops, we're gonna see shit that never happened in our lifetimes.
So I guess this time it IS different.
I warned you all I was short. Time to close it for now and wait for the bubble to burst.
Up, up, and away.
To infinity, and beyond.
It's a bird, it's a plane, no - it's a Runaway Ponzi.
etc.
"If you have a share of XYZ that is valued at $100, and the value of the dollar decreases by 50%, then the share of XYZ is now valued at $200, eventhough the underlying value of the XYZ company did not change."
One thing has changed. You are now liable for $100 in taxable "profit".
Congradulations on your win!!
Maybe it is the fact that in the TARP bill the Fed was authorized to by S&P futures to keep the market from going down.
That might have something to do with it.
And we all know how much money the Fed has...
I just woke from a nap to a strange dream.
Is it possible that everything will be backwards today?
Will there be an epic sell-off at 3:30 today?
Maybe I'm still dreaming -- The Merican Dream
It would be a hoot if someone would post charts of the current market crash by pricing the Dow or S&P in Bitcoin.
I don't know how many of you are actually watching the data, but today has been strange.
I'm seeing trades above ask / below bid on major ETFs and large stocks. That doesn't happen often. When it does, its usually a result of various alternate venues (i.e., BATS, EDGX, etc) being unable to communicate with each other.
google "self help" AND bats to see what I'm talking about.
Think about this...
We have about 15 more days of this bernank induced ramp-ogasm in front of us.
I wonder if the system can hold together for that long.
the start of today's later ramp also seems to coincide with the Fed today setting/announcing multiple price 5 day reverse repo's
Nice observation.
I'll go along with the significance of your pronouncement for the sake of making this argument:
If that is the case, why are we not reading that HERE at ZH?
Shouldn't that be a newsworthy event for the denizens of ZH?
If so, why aren't we seeing it as a major story?
Who knows?
Maybe Nanex is working on the story now.
I've been doing it. It's pretty spectacular.
Wow, they pumping the Dow laggards like MSFT, INTC and CSCO today....the PPT is focusing on the laggard Dow techs today.
Trade Balance Bitchez!
What will really bake your noodle is when you consider the capital gains tax on gold bullion. The government prints dollars, causing the value of the dollar to go down, and the nominal value of the gold to go up, so when you sell the gold you owe a capital gains tax to the very same government, eventhough the real value of the bullion didn't change, only the value of the dollar.
However, some physical gold, such as coins, has no serial identification, and thus is notoriously difficult for governments to track and tax...
...and just another reason governments hate it so much.
No capital gains tax when the coin is used to pay for food, gas, bullets, etc.
Yet another reason why governments hate it.
GB Britannias are capital gains tax exempt too :)
Premiums suck though. You can expect the west will go strap-on anal regarding all capital, in any form, in ever decreasing amounts, once the Great Reset rips the world apart.
I think you overestimate the capital gains tax delema as hundreds of thousands of boating accidents have made this moot. And it really is a tragedy.
The kill switch
we all hate those delemas.
"Dow Jones at New All Time Highs"
Bernanke has it on medical marjuana
He must have put the Doritos in the upper Right
Is is just me... or is it not obvious that the stock market ramp is the most obvious indicator of inflation? Simply put, those who get their grubby hands on the new money first are the ones to profit. I guess the markets will pump as long as the money supply is being inflated. Stopping the printing won't make the already created money go away; it will just pass the inflation on down the line to those who can least afford the inflated fiat.
Like I say, is this just me? How can one NOT expect the markets to behave this way? Anyone who says there is no inflation must first explain the stock movements... fundamentally. Good luck with that.
rock, evidently it is JUST YOU, so cut it out and don't disturb anyone.
Now, move along ;-)
- Ned
Thanks for the encouragement! I guess that when a person is balls-deep in the stock market the obvious is easy to overlook. Funny how that cognitive bias thingy kicks in.
Doesn't matter. As long as stocks are making new highs, I'm a buyer.
MDB,
Nice to see you're back in one piece after that visit to the "hospital."
Please keep buying these new highs. And if you run out of money, mortgage your house, then borrow moar fiat from your mother and repeat the process.
As Long as the Fed prints, there is no reason for a major correction, with exceptions such as NK lauching a nuclear attack or other simular events. Market is likely going up because they believe more QE is coming, or at least the Fed isn't going to take away the punch bowl with all these negative economic indicators. If the economic indicators were positive it would probably lead to a correction as investors would fear the Fed is going to take the punch bowl away. This is simular to the situation back in 2004-2005 when the market popped on negative employment figues, and contracted when the employment figures were good.
Bitcoin is beating out stocks by a long shot! Stock owners are ignorant here. xD
I'll gladly pay you tuesday if you buy me some stocks today MDB....
just like any other addict always chasing new highs : http://www.youtube.com/watch?v=JT2SsWOCoEw
todays ponzi brought to you by a most shorted s&p 500 stock........FSLR.....who is up on, wait for it......EXPECTATIONS (aka hope, sentiment etc etc)
It seriously looks set to gain 50% in one day. Lets all keep in mind that this thing is on the weekly options list, this is a major stock symbol (ie., not a penny stock, at least not descriptively) that is traded by major institutions. Normally you would only see this size gain as a result of M&A. It's up 50% on.... 2013 full year guidance.
Holy, mother, fuck, is this market broken. I really thought nothing would surprise me anymore. This was surprising.
The market is just frontrunning that Super EMP that Un is going to detonate over North America tomorrow-now that's BULLISH!!!
I think about that a lot. History runs in cycles its true but there had to come a time when the villains and the resource and the pollution and the debt would hit a global level and scale "never seen before" Lucky us.
You and Forrest Gump
You're both geniuses.
It's the real thing...
I'd like to teach the world to sing in perfect harmony.
I'd like to hold it in my arms, and keep it company
...I'd Like to Buy the World a Coke
...was FINE ~ until you RUINED it...
Miss, miss, miss is exactly why highs are being hit. It's the good old "bad news is good news," as bad news means QE won't slow.
Yep, if the misses continue maybe they'll kick it up over 100B a month. Just think, now when the banksters get their bonuses they'll finally be able to afford that seventh yacht!
It's not a maybe that QE will be increased, it's a question of when. The only alternative would be to allow the global fiat monetary ponzi to immediately implode and then the central planners would lose a vast amount of control over directing resources to polically benficial parties.
Like I wrote before, I will punch you in the cunt and haunt your breakfast.
Peeps- Quit responding to jag-weed and he will go.
Ta
We used to see this douche comments few times, now he writes everyday.
Forgive him, the economy is bad, he's paid extra by his masters to troll here.
I up voted the little retard.
We neded him to tell us he was fucking the finacail sytem up?
Krugman you bum!! When are you going to answer this question I keep on asking you? This is the three time.
"If growth is defined in monetary terms and money is debt (interest bearing), please explain how exponential growth of debt is sustainable into eternity.
If money (debt) exponential growth is not sustainable into eternity, then WHAT HAPPENS WHEN THE EXPONENTIAL MONEY (DEBT) GROWTH FAILS?
TIA..."
Fuck You Krug
Hey Krugman I have a friend who is an economics professor. He mentioned you and said you were always a fraud and a pain in the ass. He did admit that most people sleep thru your lectures
Oil and food are going up again. With all the ample labor wages should remain low or lower.
It squeezes consumption and wealth form the 90%.
Brilliant plan. What happens when people cannot afford to eat and live?
Guess the mobs have to direct their anger at the right people when it comes time.
Oh, have no fear.
You can bet your ass they will be told where to direct that righteous anger.
The plans are drawn... It was those lousy ZH'ers.
No, I think it will be targeted at those religious fanatics that go against the popular mindset.
Witches all, burn 'em alive, dead if need be.
"they" put the SPX at 666 on the way down. they can put it anywhere they want.
Trolling much ?
I still have a very hard time believing this isn't a parody.
I'm sorry Mr Krugman, but I negged you entirely due to your account name.
On second thought, no, I am not sorry at all.
Why would you choose such a loser for an account name? You have some masochistic yearning for public humiliation?
dallas is never further away than it is... it is just the numerical value of the units chosen to represent the distance have shorten compared to the old basis and require moar to represent the same distance.
In Soviet Amerika, the rulers measure you.
+1 for triple pun.
Triple pun PLUS you stole Boris’ line
Is the Fed still printing 85 billion a month + whatever they contribute to the shadow banking system?
If yes, the Dow Jones goes up.
If no, the Dow Jones is at 7k.
and of course the "good effect" will exponentially diminish and the bad effect will do the opposite
Yep, and don't even start trying to "adjust" the current Dow for components that fell out due to bankruptcy/share price decrease over the past 5 years - I believe there have been 7 substitutions during that time. I tried to do the "adjustment" but finally gave up after attempting to understand how the Masters compute the "DJIA " - it is much more complicated than you would think:)
Exellent analogy.
Wouldn't you be up with all those Misses around?
Europe and Japan are looking so damn good... And how about parking big money in China?
Maybe, just maybe, the US is the only place left to park big money? After all the money has to go somewhere and the US might just be the less ugly at the moment.
Strangely... no media covering about the Fitch downgrade of China...
1929 the number another summer (get down)
Sound of the funky drummer
Music hittin' your heart cause I know you got sould
(Brothers and sisters hey)
Listen if you're missin' y'all
Swingin' while I'm singin'
Givin' whatcha gettin'
Knowin' what I know
While the Black bands sweatin'
And the rhythm rhymes rollin'
Got to give us what we want
Gotta give us what we need
Our freedom of speech is freedom or death
We got to fight the powers that be
Lemme hear you say
Fight the power
"I Miss the point?"
First impulse...out loud laughter.
Sudden recollection...are we breathing?
When...this huge ginormous bankster squidly-diddly THING goes down...the splash will be huge.
Breath deeply...repeatedly...it is the way to get through ALL purposly caused shocking and sudden Events.
Listen to your heart.
Just for fun:
http://www.youtube.com/watch?v=E3EQV223Y-M
Miss who?
I'm lost.
Not sure about the "and back" part.
(nice Audie Murphy reference, tho...)
Now if all earnings miss bulls will be fine.
Ben Bernanke said at his press conference after the last Fed meeting, "Stocks are at nominal highs." The nominal highs do not reflect the current state of the economy.
exactly they DO NOT reflect the current state of the economy --- they have been manipulated higher u dumb ass
No shit jewy
which was his cryptic way of uttering the infamous "irrational exhuberance" comment for the 1% that understand, welcome to the other 99%
$85 Billion/month from Chairman Mao-Nanke - Beat
Money leaving Japan and Europe for USA.Who would want their trash at this point,US trash will be taken out later.
Wealth without Work bitchez..
The game is coming to a close, folks.
Find a chair
I'm afraid all the chairs have been reserved well in advance. Thank you for 'banking' with us and have a nice day.
I have one spare dildo to sit on
I lost my chair in a boating accident.
I lost my dildo in a chair accident.
find a garden
The market is like Wiley E. Coyote after running off of a cliff, and about to look down.
Mr. Krugman will disagree and note that the monetary stimulous of the Fed will bring the floor back up to Mr. Coyote. Macro data will improve and it could have been much worse and we need MOAR monetary stimulus.
And, we should all buy stocks of companies like ACME Batsuits, Fireworks, Beartraps, Rockets, Catapults, and Slingshots, so as to be contributing members of a productive society.
This has been screaming "mother of all fuck ups" for many years now. I'm surprised it's lasted this long, but I vastly underestimated (to borrow Draghi's phrase) the power of free money.
Rigged would be understatement.
My wife's blood pressure reaches an all time high when I Miss the toilet too.
Pee or vomit?
jizz ?
Shit?
That list looks like Obama's free throw attempts.
is that basketball bracket tournament thing over yet?
(actual question...i shant google but wait for ,i assume, snarky answer)
<-- breaks out the 15K hats, bitchez!
American Idol is on tonight, yay!
Isn't that turd of a show on every night?
BitCoin High:$239.11100
Bubbles, bubbles everywhere. Except in gold & silver.
Be patient, my friend. We'll get there at the end, when all others already burst.
As my mate George said 'Gold is the ultimate bubble'.
Nope, Goldman Sux sez Gold $1500/Oz. at the end of the year . It must be an bubble ....
Yeah, as I said below, the price is fucking great. I CAN'T FUCKING BUY ANY, because none of the dealers have any, but if I COULD buy some, the price for it is great. Like the fucking supermarkets they used to make fun of the the old USSR - 'Ha Ha, look at those fucking dummies with their price controls - bread is cheap for everybody, but there's not bread on the shelf - stupid fucking commies!!' Guess somehow that doesn't apply for gold and sliver though. I am so fucking pissed right now - and not because the price is low, BECAUSE I CAN'T FUCKING BUY ANY.
Have you tried buying bulk .22 rounds lately?? None of those puppies available either.
Pro'lly cuz you can hunt small game with .22 and would be able to feed yourself when there is no food to buy.
seriously, silvergoldbull.com or comparegoldprices.com – it’s out there.
I got a delivery on the way with tracking number and a delivery just arrived from there and is shiny in hand.
Silver would be $145 if it had kept up with Bitcoin during Cyprus crisis.
I'm sure all the poor people's brokerage accounts are much wealtthier now that the Dow & Es hit all new highs.
Dow Jones Fibby target - 14707.
http://bullandbearmash.com/chart/dow-jones-hourly-ramps-46-points-final-...
It's a gong show out there.
Alcoa has 28 days of operating capital left in their organization - that's ok - they'll sell ZIRP bonds to finance their share buy backs.
orange, you got a link to that alcoa info?
That is a disturbing stat.
It's actually right in the report if you look at the operating cash on hand and expenditure rate. Sales of Aluminum also dropped about 10% YoY. Alcoa's operating cash has bee significantly reduced over the last few quarters.
Yet earnings increased from Q1 2012. I'dunno.
Alcoa maintained its solid liquidity position, ending the quarter with cash on hand of $1.6 billion. The Company achieved a first quarter record low of 28 days working capital – 4 days lower than the previous first quarter record set in 2012, and 15 days lower than the fourth quarter of 2008.
http://www.businessinsider.com/alcoa-q1-2013-earnings-2013-4
Don't worry. Fed has an infinite supply of fiat money. If the market falls, Bernanke will be printing $200 billion a month. Keep away from gold and silver as Bernanke does not approve.
How can you possibly lose?
PS Buy GS calls before earnings - they own the Fed.
Just got a letter from my insurer...
I got my entire invoice till oktober 2014... I normally pay every 6 months a piece...
I called... the answer.. yeah, we changed our payment policies, 18 months in advance from now on... and If you don't agree you can still quit your policy.
WTF!!! AND THE FUCKED UP PART IS THAT'S TOTALLY LEGAL FOR THEM TO DO THAT!!
I guess I better look up their stock and buy a little short position on those fuckers.
SD, coincidentally, I just received a notice that my health insurance (EU) is going up 25% in 2 months time. Could it be that the insurers have been left out to dry by Mario?
my insurer changed names about 3 times this year.
every time they where taken over.
I think you're right that there's something wrong with the insurers.
They're heavely invested in the bonds market, 70% to be exact because that's the minimum obliged by law.
So calculating the greedfactor in... they bought southern bonds for sure.
And Aetna SUCKS too.
Vivium...
My insurer said my premiums are going up 25% because of an adjustment in life expectancy not because of their bond portfolio. YEAHHHH RIGHTTTTTT!
you could tell them that you smoke and that a longer life expectancy just isn't in the cards...
but than they'll just raise your premiums because of the higher risks... by 25% or something :)
They are bringing revenue forward. I can't imagine what 2014 brings for insurers, few more AIG's probably.
and Gold still cant crck $1600 and Silver still cant hold $28...
yep, these r completely logical and legitimate free fucking rigged fucking markets...
FUCK YOUR BERNANKE YOU COCKSUCKER MOTHER FUCKING SOCI0PATHIC BITCH ASS BANKER FUCK.......................
You should be thanking Ben.
On the fundamentals it should be $2000/40 at least.
Buy, don't grouse.
guys dont misinterpret my hatred for Bernanke and these fake ass markets...
been stacking since 2007 if u have ever read me here...
aint a damn thing changed just despise what is taking place and how its affecting savers not just in debt coupon dollars who dont know the time, but also the believers in sound/real money and the benefits it could bring to the whole of society.......
dont trip on me homeboys.............
Indeed. I was regretful selling gold (not all of it, thankfully) into the 1900 peak (hit 1800 not 1900 myself) because it meant I had less gold and that I'd pay way more in the future to get it back. Mind you I still have some and my buy-in price was delivery/insurance + 1100 to 1200 spot so it's not like I'm sad at current valuation. However I miss having hands full of gold. Ya, I got silver now, it's shiny too. It's not gold though, and it's nice to get more of that.
I am actually very thankful to uncle BernanQE for delivering such low prices to me. Given where it's going and how fast ... this is literally a giant Christmas present.
why are you bitching that something you want to buy is on sale?
Oops, sounds like someone was short.
oodles of digital bennybucks flowing through the electronic veins of those who are first to feed at ben's trough: HIT
You sunk my Battleship!
(sadly, it was full of bullion coins that are now lost forever...)
could you kindly provide me the latitude and longitude of last know whereabouts of your sunken battleship??? and the approximate amount lost??? im going to 3d print a deep sea mini sub.....................
I smell a major hedge fund blow up -a- brewing.
Big ass Force perturbations. My inner Ben Kenobi not only gassed and took a seat in the breakfast nook in my inner Millenium Falcon but also just asked my inner Han Solo for some whiskey, "if you got any".
My trust: BIG MISS!!!
My faith: BIG MISS!!!
My anger: BIG BEAT!!!
+100
I heard Molotov cocktail is great relief of stress.
Because if it went down, that would be game over.
Because when it goes down, it will be game over.
Epic reaming of the pensions funds. EPIC!