Dow hits 4 year high, NASDAQ too. Yay Socialism!!

whygohome

My best friend is a commodities trader on Wall St. One day, when the NASDAQ reached a record high, he texted me: "NASDAQ hits record high. Yay Socialism!!" Obviously, it was a joke at the expense of...well, that's not important at the moment.

Stocks Rally 1%, Dow Crosses 4-Year High
Published: Tuesday, 1 May 2012 | 12:37 PM ET
Text Size
By: JeeYeon Park
CNBC.com Writer


Stocks added to sharp gains across the board on the first trading day of May, with the Dow hitting its best level since December 2007, propelled by a better-than-expected manufacturing report that calmed worries over a slowdown in the recovery.

Major U.S. Indexes
DJIA
13329.65
116.02
+0.88%
.NCOMP
3079.05
32.69
+1.07%
0
.SPX
1413.76
15.85
+1.13%
0

The Dow Jones Industrial Average jumped sharply, led by BofA [BAC 8.3399 0.2299 (+2.83%) ] and JPMorgan [JPM 44.0674 1.0874 (+2.53%) ], after managing to eke out a small gain in April for the seventh-consecutive month.

Cisco [CSCO 20.123 -0.032 (-0.16%) ] was the only laggards on the blue-chip index.

The S&P 500 and the Nasdaq rallied 1 percent each. The CBOE Volatility Index, widely considered the best gauge of fear in the market, slipped below 17.

All 10 S&P sectors turned higher, led by energy and financials.

gimmesometruth27

somehow the gop is going to claim all the credit for this... :roll:

inlet13

whygohome wrote:

My best friend is a commodities trader on Wall St. One day, when the NASDAQ reached a record high, he texted me: "NASDAQ hits record high. Yay Socialism!!" Obviously, it was a joke at the expense of...well, that's not important at the moment.

Stocks Rally 1%, Dow Crosses 4-Year High
Published: Tuesday, 1 May 2012 | 12:37 PM ET
Text Size
By: JeeYeon Park
CNBC.com Writer


Stocks added to sharp gains across the board on the first trading day of May, with the Dow hitting its best level since December 2007, propelled by a better-than-expected manufacturing report that calmed worries over a slowdown in the recovery.

Major U.S. Indexes
DJIA
13329.65
116.02
+0.88%
.NCOMP
3079.05
32.69
+1.07%
0
.SPX
1413.76
15.85
+1.13%
0

The Dow Jones Industrial Average jumped sharply, led by BofA [BAC 8.3399 0.2299 (+2.83%) ] and JPMorgan [JPM 44.0674 1.0874 (+2.53%) ], after managing to eke out a small gain in April for the seventh-consecutive month.

Cisco [CSCO 20.123 -0.032 (-0.16%) ] was the only laggards on the blue-chip index.

The S&P 500 and the Nasdaq rallied 1 percent each. The CBOE Volatility Index, widely considered the best gauge of fear in the market, slipped below 17.

All 10 S&P sectors turned higher, led by energy and financials.

It's great that the Dow improved, and I hope it continues. But, if you or your friend think macro fundamentals are improving, hate to say it but... you're delusional. If we really want to have threads about 1% gains/losses, we would have had a bunch on those that were loss-oriented that took place over the last few weeks. I mean the DOW broke through 13000 in BOTH February and March, only to fall right back below it again. May has typically been a bad month over the last few years, so it's great its' starting off well. And, I don't want to diminish your optimism. I just want to add a touch of real life to it.

For example, did you know that England, Spain, Greece, Portugul, Ireland, Netherlands, Belgium, Czech Republic, and Slovenia are in CONFIRMED "double-dip" recessions... right now? Some of these were just confirmed. EU will be in one, if it isn't already. Europe's economy is larger than the US economy. Our recession - pulled them into recession (first dip), what do you think their new recession (double dip) will do to us?

I wouldn't do happy dances about 1% gains in stocks just yet.

Oh and ummm... socialism or movement towards that end of the spectrum, from my perspective, is a huge reason for this double-dip. Hence, why you see countries with the worst Debt/GDP ratios falling first.

whygohome

inlet13 wrote:

It's great that the Dow improved, and I hope it continues. But, if you or your friend think macro fundamentals are improving, hate to say it but... you're delusional. If we really want to have threads about 1% gains/losses, we would have had a bunch on those that were loss-oriented that took place over the last few weeks. I mean the DOW broke through 13000 in BOTH February and March, only to fall right back below it again. May has typically been a bad month over the last few years, so it's great its' starting off well. And, I don't want to diminish your optimism. I just want to add a touch of real life to it.

For example, did you know that England, Spain, Greece, Portugul, Ireland, Netherlands, Belgium, Czech Republic, and Slovenia are in CONFIRMED "double-dip" recessions... right now? Some of these were just confirmed. EU will be in one, if it isn't already. Europe's economy is larger than the US economy. Our recession - pulled them into recession (first dip), what do you think their new recession (double dip) will do to us?

I wouldn't do happy dances about 1% gains in stocks just yet.

Oh and ummm... socialism or movement towards that end of the spectrum, from my perspective, is a huge reason for this double-dip. Hence, why you see countries with the worst Debt/GDP ratios falling first.

This post was tongue-in-cheek. (And, it is connected to one of my earlier thread's concerning the connection between Wall St. and Main St.)

My friend and I are well aware that this means nothing/close to nothing for the larger economy and for Main St. (Also, my friend is a 33 year old millionaire who works 10 hours a week. He is far from delusional.)

I'm not optimistic, because I know that this generally means shit for Main Street. it just shows that our economy, even when mired in a recession favors the rich and the powerful. This won't change as long as D.C. is bought and sold by the same people who benefit most by this system.

Also, those countries you listed, most of them took the path of austerity, and some the path of ONLY austerity, and that is the leading factor as to why they are in a double-dip. **Especially England.

whygohome

gimmesometruth27 wrote:

somehow the gop is going to claim all the credit for this... :roll:

Haha. But none of the blame for the collapse!!

Poor Greenspan and Paulson. They watched in disbelief and a babbling stupor as the product of their free-market libertarianism collapsed.

inlet13

whygohome wrote:

Also, those countries you listed, most of them took the path of austerity, and some the path of ONLY austerity, and that is the leading factor as to why they are in a double-dip. **Especially England.

First, not all of them have. Second, they were put into the situation by the opposite of austerity.

I find it hysterical that Keynesians always try to convince people that the cure for ills is more of the drug that got them ill. Now, if you're arguing weaning off may be smarter, I could see that. But, arguing for more government spending in light of the Debt issues, is incorrect in my mind.

CH156378

:corn:

Newch91

gimmesometruth27 wrote:

somehow the gop is going to claim all the credit for this... :roll:

Waiting for it. I got money on Allen West claiming credit for it.

gimmesometruth27

Newch91 wrote:

gimmesometruth27 wrote:

somehow the gop is going to claim all the credit for this... :roll:

Waiting for it. I got money on Allen West claiming credit for it.

my money is on boehner and cantor claiming it....

mitch mcconnell has an outside shot at it too...

:corn:

Newch91

gimmesometruth27 wrote:

Newch91 wrote:

gimmesometruth27 wrote:

somehow the gop is going to claim all the credit for this... :roll:

Waiting for it. I got money on Allen West claiming credit for it.

my money is on boehner and cantor claiming it....

mitch mcconnell has an outside shot at it too...

:corn:

All viable candidates for it.

Wobbie

Mitt will have it above 15,000

CH156378

FORWARD

whygohome

imalive wrote:

Mitt will have it above 15,000

Well, no matter who wins, I would hope it is above 15,000 by next year.

Newch91

Is today the highest it's ever been or did it hit 14,000 before?

whygohome

Newch91 wrote:

Is today the highest it's ever been or did it hit 14,000 before?

14,164.53-- October 9, 2007, before the crash

CH156378

viewtopic.php?f=13&t=165572&hilit=dow+drops+634

inlet13

CH156378 wrote:

http://forums.pearljam.com/viewtopic.php?f=13&t=165572&hilit=dow+drops+634

Multiply the gain in the Dow today (65 points) by 10.... by 10...

...that would be a +650 point upswing. That thread you brought up was in regards to a -650 one day.

The OP was also very early with their optimism, considering the NASDAQ and DOW gained .13% and .5% respectively today... neither gained 1% to close as they thought...

...basically, as Goldman said, "folks remember Europe isn't closed tomorrow".

http://www.zerohedge.com/news/goldman-e ... d-tomorrow

Enjoy your party tonight though.

CH156378

FORWARD

Newch91

whygohome wrote:

Newch91 wrote:

Is today the highest it's ever been or did it hit 14,000 before?

14,164.53-- October 9, 2007, before the crash

Thank you.

whygohome

inlet13 wrote:

CH156378 wrote:

http://forums.pearljam.com/viewtopic.php?f=13&t=165572&hilit=dow+drops+634

Multiply the gain in the Dow today (65 points) by 10.... by 10...

...that would be a +650 point upswing. That thread you brought up was in regards to a -650 one day.

The OP was also very early with their optimism, considering the NASDAQ and DOW gained .13% and .5% respectively today... neither gained 1% to close as they thought...

...basically, as Goldman said, "folks remember Europe isn't closed tomorrow".

http://www.zerohedge.com/news/goldman-e ... d-tomorrow

Enjoy your party tonight though.

I repeat: I wasn't being optimistic. That's not my nature, in general, and definitely not with Wall Street's good news being good news for Main Street.

The point of this thread was to show the foolishness of the socialism/Marxism claims, but, more specifically, to show that Corporate America is doing pretty well, CEO pay is through the roof, and that this system no longer represents the American public.

DriftingByTheStorm

You don't think stock market valuations might be representative of some sort of "bubble" formulated around the greatest period of inflation \ monetary debasement in United States History? (Money Supply Soars to All Time High)

I'm just saying.
The price of gold has nearly tripled in the past 5 years, and people are excited that the stock market has risen 35% ?

Realistically this is actually BAD news, because the stock markets are now bumping their heads along a TOP and traders are sitting there staring at their screens in disbelief going, "shit, i was long. but now ???" ... who in their right mind is going to go LONG at a valuation that is about to exceed the PRE-FINANCIAL-CRISIS highs?

Does ANYONE think we are in a better spot NOW than we were before the collapse in 2008?
If you say no ... then, look out below. :(

DriftingByTheStorm

Seeking Alpha wrote:

When they occur during secular bear markets, cyclical rallies have an average duration of 33 months. Therefore, at a current duration of 38 months, the bull market from 2009 is likely in the final stage of its development.

even better wrote:

The last extreme advance from October 2011 has produced a gain of 30 percent during the course of six months and it is highly likely that the next downtrend will be equally violent.

the bombshell wrote:

Based upon more than 80 years of data, stocks are now in the riskiest one percentile of all historical observations.

READ THIS:
Stock Market Risk Remains At Historic Extreme

DriftingByTheStorm

Reality check (look at the GREEN line):
DJIA, ***INFLATION ADJUSTED***

unsung

DriftingByTheStorm wrote:

You don't think stock market valuations might be representative of some sort of "bubble" formulated around the greatest period of inflation \ monetary debasement in United States History? (Money Supply Soars to All Time High)

I'm just saying.
The price of gold has nearly tripled in the past 5 years, and people are excited that the stock market has risen 35% ?

Realistically this is actually BAD news, because the stock markets are now bumping their heads along a TOP and traders are sitting there staring at their screens in disbelief going, "shit, i was long. but now ???" ... who in their right mind is going to go LONG at a valuation that is about to exceed the PRE-FINANCIAL-CRISIS highs?

Does ANYONE think we are in a better spot NOW than we were before the collapse in 2008?
If you say no ... then, look out below. :(

At least someone gets it. The Dow number means nothing when the dollar has never been weaker.

inlet13

DriftingByTheStorm wrote:

Reality check (look at the GREEN line):
DJIA, ***INFLATION ADJUSTED***

Great chart. I thought about explaining this, but figured it wasn't worth it. The pro-Obama crowd doesn't want to listen to logic, nor do they want to talk economics (not that the other side is any or much better). They think any negatives mentioned regarding the economy is a direct shot at their guy. Obviously, it's much more complicated than one guy. in my humble opinion, they should just put their political pom-poms away, stop saying "forward" and read about how we're about to go backward real fast. The EU house of cards is starting to crumble, and we'll follow suit:

http://www.zerohedge.com/news/eurosis-back-bang-pmis-collapse-unemployment-surges-record

Semi-unrelated: I would not be remotely surprised if the Dow and NASDAQ fall by more today, than they each gained yesterday.

polaris_x

any of you guys read krugman's article on bernanke in the times?

inlet13

polaris_x wrote:

any of you guys read krugman's article on bernanke in the times?

No, but I saw the Krugman vs. Ron Paul debate the other day. It was interesting. I'll look up this article now.

inlet13

http://business.time.com/2012/04/30/battle-of-the-heavy-hitter-economists-krugman-and-bernanke-slug-it-out/?iid=biz-main-mostpop1

To me, this is what's wrong with the world....

An uber-Keynesian academic (activist) calling out the most-ultra special Keynesian (the one who's actually putting forth gobs and gobs of Keynesian policy for years)..... for....

not being Keynesian enough. :fp:

polaris_x

i thought of you when i read the article ...

usamamasan1

Sell in May and go away.
Believe in America
Woot

inlet13

polaris_x wrote:

i thought of you when i read the article ...

I'll be honest, I wish there was an outspoken economist on the Austrian side like Krugman. I think I pretty much disagree with Krugman on most issues, but I'll give him credit for engaging in the policy debate.... that's rare for economists.