Why is the DOW up on 11/19/2012?

Good housing market report.

Talks of fiscal cliff compromise.

People with connections sold earlier when it was high and then bought back lower to make money out of nothing with this recent rise.

Then there are those that sold after it went low and are buying now, losing money with every step.

The insiders are making a killing with this volatility while real gains are not even happening.

And above all, artificially low interest rates coupled with the inflation-affected measures of the index. On top of that the major stock indexes are companies that occupy a high percentage of the portfolio's of B&H"Value-Investor's" (brainwashed into believing in a system, which is based intrinsically on next to nothing) The reality of corporate financing is far different than the personal loan market. Even if the DOW holds steady for an extended period price wise you have to realize that American industry is on the decline. The only thing keeping the system afloat right now is the central banks controlling the eur/usd so as to keep the market hegemony intact. This still can't combat the natural market inflation that resulted from our spending practices. Don't have cites but the American dollar is significantly weaker against may different currencies, the euro doesn't really count either because it is a contrivance, which has less than one would think to do with market equilibrium.

If I understand correctly who things work, 5 consecutive days of losses means Romney gets a mulligan, correct?

Markets don't go up or down in a straight line. I would sell the rally...

Markets were heavily oversold. Bernanke is printing 80 billion a month to support housing/equities.

Institutional investors know that they have to revamp a little to sell even more at a higher price.

There will probably be one more wave down due to the fiscal cliff after Thanksgiving, but before Christmas, and then the Bernanke dream can reach reality Jan 1.

Print money, take it all back in taxes, it will be a wonderful system that keeps America afloat for another 2-3 years.

I expect AAPL to go up a little more, HPQ should surge tomorow, and the retailers should trickle up to Black Friday. This will all support the markets. Cyber monday will help Overstock, Amazon, and Ebay. Month window dressing Nov 30 and option busting on that friday should also keep us green this week and next.

The next wave of selling will probably see a 3-5% decline in early december before the fiscal cliff resolution. Use this decline as buying opportunity.

If HPQ goes up a dollar tomorrow I will make 10g's. If it goes down or stays flat I lose 1g.

BTW some people made obscene amounts of money in AAPL who bought at 510-515 on Friday last week. 10% on AAPL in about a trading day. Incredible.

I love peeps wrote:

If HPQ goes up a dollar tomorrow I will make 10g's. If it goes down or stays flat I lose 1g.

BTW some people made obscene amounts of money in AAPL who bought at 510-515 on Friday last week. 10% on AAPL in about a trading day. Incredible.

You make or lose nothing until you sell.

Pay attention. Here's how the stock market works:

It goes up.....it goes down....repeat.

I can sell in less than a second with my brokerage and buy it back 10 seconds later, sell it all a second after that etc.

I'm not quite sure what your point is. My point was I own a lot of call options on Hewlett Packard. About 1500 dollars worth, if nothing happens or the price goes down tomorrow pretty much all of it is gone, I might be able to sell them for a big loss if the price goes sideways. If the price goes up a dollar I make 10 grand.

The trade works out like this:

HPQ > 14 profit = 10,000

HPQ = 13.20 loss = 500

HPQ < 13.20 total loss of 1,500

The calls will be worth a hundred dollars each instead of 10 to 15 dollars when I bought them. Either my broker or I will then sell them for a large profit tomorrow or by the close of trading Friday this week.

If you are talking about paper loses vs real loses in longer term trading, yes your statement makes sense but I'm not trading HPQ or even AAPL long term. Only things I own for long term purposes are utilities and some REITS and some corporate bonds and I don't trade those, ever.

My point is that you realize no gains or losses until you liquidate.

Steve Martin wrote:

My point is that you realize no gains or losses until you liquidate.

really? Thanks for letting me know that. I wasn't aware thats how it worked.

No problem. Happy to help.

Do you realize just how much you helped me? You probably saved me untold sums of dosh. You're an angle.

Hopefully a right angle.

Its probably going up for reason stated. But another big reason is that wealthy people are cashing out now at what they believe will be lower capital gain tax rates. Apple Inc is apparently way down. Again, its probably down for a lot of reasons but a hell of a lot of people hold stock in at at a huge gain and they want to take the gain now. So there are a lot of sell orders on it.

But the good news that you will probably not hear about is that the high income small business people earning $300K get a tax benefit out of this. They don't have a lot of wealth in the first place and the wealth they have is generally tied up in a home and an IRA. They can contribute as much as $45,000 to an IRA (A SEP IRA or SIMPLE). Dividends and capital gains in an IRA will continue to be tax free. Therefore they can buy into the stock market at a relative discount.