Wall Street day traders on the SBR network

[SBR_John]

China is up something like 15% in a week. Insane. That would be like the Dow gaining 2200 points. Not the first time. I remember when the Japan stock market got to 30,000. I was half as old as I am now and the market is barely half way back to its old highs. So be careful with those china funds boys.

[Dark Horse]

Only way to stabilize China may be a crash course. Nothing wrong with hope, but when that hope is really fear of missing out, it's the wrong impulse.

With India still to open, all Asian market are up for the day. Average looks to be over 2%. (+2% would put the Dow at 13,500). Europe is next. Gotta love modern technology.

[Dark Horse]

India up almost 300 pts, Japan close to 400 pts.

[Dark Horse]

Europe up as well. Not as much as Asia. DJII about 60 pts higher than Dow's closing.

Something happened in India. Market gave back all 300 pts.

[jjgold]

You will see a correction day, maybe later in the day

[Dark Horse]

DJII at 13,341. (Dow closed at 13,236)

Looks like Dow will open about 100 pts higher than it closed yesterday. Like yesterday.

[Dark Horse]

Check this out. L5 years of Dow (DIA) in red and Indian stock market in blue.

http://finance.yahoo.com/charts#chart4:symbol=^bsesn;range=5y;com pare=dia;indicator=volume;charttype=line ;crosshair=on;logscale=on;source=undefin ed

[SBR_John]

You playing any Indian tracking stocks Dark?

Looks like this could be a good day. Oil is finally showing a plus sign which will help the large cap oils.

So the base is built, the fear factor is fading and stocks are going higher.

[jjgold]

Where do you follow all the world markets at night in real time?

[Dark Horse]

Not yet. I just started looking at India. The potential for growth there is off the scale.

[Dark Horse]

Where do you follow all the world markets at night in real time?

http://finance.yahoo.com/intlindices?e=asia

Europe right next to it. Not sure if it's completely real time, but close enough.

[Dark Horse]

Looks like this could be a good day. Oil is finally showing a plus sign which will help the large cap oils.

So the base is built, the fear factor is fading and stocks are going higher.

Dow could gain a 1000 pts in the next month.

[jjgold]

Good Link

Thanks

[Dark Horse]

Mixed results from international markets. India +260. Japan slightly down. Europe as well. DJII at 13,242.

A little fear returned, but nothing compared to what we've seen. Still building that base.

[SBR_John]

Very good market action to make a case for the bulls. Record amounts of cash getting the ole itchy finger. The one year and two year T Bill soaring this past month is evidence of cash building. But I dont see cash coming in in a break out way until we hit bottom with this housing mess.

[BatemanPatrickl]

Not yet. I just started looking at India. The potential for growth there is off the scale.

Everything that comes out of India sucks. Their offshore software development teams are horrific; HP outsourced most of their customer service work to India and I will never buy a product from that company again. I could not understand a word the rep was was saying and he/she??? could not get my problem.

Look at all of the crap coming in from China; people are now starting to refuse to eat seafood from that country. Bottom line is when you sacrafice price, you sacrafice quality as well. Sure they can code for you at $8.00/hr but your own software engineers will spend 6 months rewriting the code.

Made in America used to mean something and should mean something again...

[jjgold]

I am long now on S-P's with a 6 point stop loss

[Dark Horse]

Good move. 16 pts for the day.

Dow up triple digits. No sell-off going into weekend. Confidence slowly getting stronger.

[Dark Horse]

Everything that comes out of India sucks.

Without going into the set of circumstances that might make India the ideal investing opportunity, let's just note that in the past five years the BSE 30 has outperformed the Dow 30 by a stunning 700%.

[Dark Horse]

As with everything else, these moves are made based on speculation. The Street hates surprises and therefore they rarely happen. Information is almost always anticipated and by the time it trickles down to the general public it is virtually liquidated fundamental data. All the insiders carefully watch the motions and emotions of the Fed. Rate increases/decreases are almost always completely factored into the market by the time they actually take place. As a financial institution, all you need is an advisor who receives the same data as Bernanke and who thinks like Bernanke. You then move on the data provided by the advisor and if he/she is wrong you scramble and find yourself a new "Bernanke".

I've been taking a closer look at the Fed in recent weeks. Just came across this little bit of info.

Since about 1989, the Fed has funded a shadowy organism called the President's Working Group on Financial Markets, more popularly known as the plunge protection team or PPT. This entity intervenes every day to prop up Wall Street's speculative house of cards. The PPT buys stock futures in Chicago with the goal of up drafting stock prices in New York. As long as the PPT can keep the price of the Chicago future above the price of the underlying stock on the NYSE, speculators and program traders will sell the future and buy the stock, accomplishing the PPT's goal of generating totally fictitious demand and preventing gaping market breaks where there is simply no bid for stocks offered.

A few billion of futures buying in Chicago can generate tens of billions of buying in New York -- especially when the operation is signaled by Wall Street figures known to be de facto spokespersons for the PPT, such as Abby Joseph Cohen of Goldman Sachs. Once speculators know the PPT is moving in, they can pile on the bandwagon, and realize nifty short-term gains before selling to the suckers before the next dip. Hundreds of billions of dollars of Fed money have been committed in this way. Whenever you see a sharp rise of the DJIA right before the close based on no news, you can be sure that the PPT is in action. The PPT is basically illegal, but it may have been authorized by secret presidential executive orders, starting under Bush senior and Clinton. Today, Bush would justify it as a war measure to maintain orderly markets.

Complete article here

http://onlinejournal.com/artman/publish/article_2304.shtml

[HAPPY BOY]

Dow futures way up should be a roller coaster with Bernaake & Bush both commenting today. Funny the thread is about day traders heres a nightmare story. My accountant recently settled an audit for me, it seems that trading firms only report your stock sales to the IRS. In other if you bought xyz for 10.00 and sold it for 5.00 the IRS gets a statement saying u made 5.00 not lost 5.00 Unless you file and report the loss they assume you made taxable money. Anyways I was audited saying I did not report 45 k of stock sales and owed the IRS 15 k. Long story short I only owed them 3k and I paid them. Well. yesterday my accountant called me and said he has a client being audited get this for 42 MILLION dollars. You see she was a day trader and never filed. Sad thing is she was up 700k and wound up loosing 250 k that year. The poor girl was telling my accountant that she was going to commit suicide and is now using her 4 houses to get HELOC loans to pay her debt. Now Im sure she wont owe 42 Million but just to do her books and file an ammendment my accountant says it will cost her between 20 to 25 k. The moral here boys and girls is KEEP YOUR TRADES UP TO DATE and file them.

[Dark Horse]

Good advice.

I went all in after trading yesterday. Good thing. The Dow is already up about 130 pts pre-trading today. PPT boyz setting the positive mood?

[SBR_John]

I picked up CAT yesterday for what I hope is a 1 year play. I still think we will not hit fresh new highs this year. The over hang and spending slow down is going to take time to work through.

[pico]

Bernanke: Fed ready to act
In eagerly awaited speech, the Fed chairman says the housing market could weaken further and that the Fed is following the mortgage meltdown 'closely.'
By Paul R. La Monica, CNNMoney.com editor at large
August 31 2007: 10:19 AM EDT


NEW YORK (CNNMoney.com) -- Federal Reserve chairman Ben Bernanke described the recent housing downturn as "sharp" and added "that further declines in homebuilding are likely" in a highly anticipated speech Friday morning.

But he also hinted that the central bank was prepared to cut rates if necessary, news that may soothe jittery investors. However, stocks, which were trading significantly higher before Bernanke's prepared remarks were made public, gave up some of their gains, following the release of the speech.

Bernanke, making the remarks at the Federal Reserve Bank of Kansas City's Economic Symposium in Jackson Hole, Wy., said that "if current conditions persist in mortgage markets, the demand for homes could weaken further, with possible implications for the broader economy." He added that the Fed was "following these developments closely."

BlackRock's Fink: Talk of Fed cut 'foolish'
Concerns about increased defaults by subprime mortgage borrowers, consumers with poor credit histories, have rattled Wall Street, causing wild swings in stocks over the past month and prompting the Fed to cut its discount rate two weeks ago.

Bernanke further explained the reason behind the cut of the discount rate, which is what banks pay to borrow money from the Fed, in his speech and added that the Fed was ready to take more action if need be.

He said that the purpose of the discount rate cut was to assure that funds would be available to banks and "alleviate concerns about funding that might otherwise constrain depositories from extending credit or making markets" and that "the Federal Reserve stands ready to take additional actions as needed to provide liquidity and promote the orderly functioning of markets."

Investors were eagerly awaiting Bernanke's comments ahead of the long Labor Day holiday weekend Friday in order to see if there would be any clues as to whether the Fed would lower the federal funds rate, which influences the rates on various consumer loans, at its next meeting on September 18, if not before.

Read the full text of Bernanke's speech
But Bernanke maintained that it is not the Fed's responsibility to bail out borrowers who took on risky loans or the financial institutions that made them, saying that it would not be "appropriate...to protect lenders and investors from the consequences of their financial decisions."

Nonetheless, he did say that "developments in financial markets can have broad economic effects felt by many outside the markets, and the Federal Reserve must take those effects into account when determining policy."

Bernanke also said that there is a risk that "the further tightening of credit conditions, if sustained, would increase the risk that the current weakness in housing could be deeper or more prolonged than previously expected, with possible adverse effects on consumer spending and the economy more generally."

[Dark Horse]

I picked up CAT yesterday for what I hope is a 1 year play. I still think we will not hit fresh new highs this year. The over hang and spending slow down is going to take time to work through.

I think we'll see an upswing for the next couple of weeks or so. I'm out around the middle of the month or pre-trading on the 18th; the day of the next Fed statement (and expected rate cut in the minds of many). Will probably sell short around the 21st.

Did a first projection for the first three months of 2008. Not pretty.

[ShamsWoof10]

Years ago I used to think the US economy and US markets are directly related... I realized last year that this is NOT true...

I talked to a few friends day to day about this and they (as well as posts here) keep saying how the market is going to go down/crash when this bad news and that bad news come out... Fokes the world can come to an end and the markets are still going higher... When bad news comes out the markets corrects but a few days or maybe a week later the markets shrugg it off and move higher..

Think of all the bad news that has came out since 9-11.. Everything from 9-11 to Enron to major job cuts, to the housing slump not to mention Katrina.. THAT'S JUST FOR STARTERS!!! The DOW is only 700 points off of it's all time high... It has almost DOUBLED since it's 7,286 low...

Yeah housing is going to suck for a long time, yeah more jobs will get cut (the financials are next on the chop blocks) yeah the credit crunch will unwind and wars will continue but SOOOOO WHAT THE MARKETS WILL STILL MOVE HIGHER!!!

ALL THIS DATA IS RUBBISH... The trend will CONTINUE... Economy down and Markets UP!!!

[Dark Horse]

The market may continue to go up, but the dollar may continue to go down.

[isetcap]

The events you are mentioning are major media events. You are overstating their impact to the economy by thinking they are the only factors being reviewed by the markets. While the economy and the markets are not directly related, there is a much stronger correlation than exists between the economy and media events. The markets are directly related to the corporate atmosphere and in a primarily capitalist country, that yields a strong relationship to the economy.

[isetcap]

The best way to subversively stifle a capitalist economy is to make sure you vigorously maintain the value of your currency. Policy that focuses on currency as opposed to growth will ultimately yield impressive under performance.

[jjgold]

I took a few days off

Traders on floor playing games all the time

[Dark Horse]

Some expert broker said he'd never seen this kind of volatility in his 55 years in the business. lol

[ShamsWoof10]

The events you are mentioning are major media events. You are overstating their impact to the economy by thinking they are the only factors being reviewed by the markets. While the economy and the markets are not directly related, there is a much stronger correlation than exists between the economy and media events. The markets are directly related to the corporate atmosphere and in a primarily capitalist country, that yields a strong relationship to the economy.

SOME of the events I mentioned are media events... Eron, JOB LOSSES (which add up to the MILLIONS since 01') housing (jobs there too) the dollar falling quite a bit since 01'.. I can keep going on things related to the US Economy but markets are higher.. INCASE ANYONE DOESN'T KNOW BY NOW>>> THE LOST JOBS ARE NOT COMING BACK!!!

[ShamsWoof10]

Some expert broker said he'd never seen this kind of volatility in his 55 years in the business. lol

That expert broker must have been on the moon in the summer of 02' when the DOW went from 10K down to 7K back up to 9K.. Since the market is higher this means it would have to move even more to compare to the summer of 02'...

[jolub]

Swings both up and down are the nature of the market. That's why you are warned about taking on too much risk.

[Dark Horse]

That expert broker must have been on the moon in the summer of 02' when the DOW went from 10K down to 7K back up to 9K.. Since the market is higher this means it would have to move even more to compare to the summer of 02'...

I think he was referring to the triple digit gains and losses that we have seen for most trading days in the last month or so.