Good Times
I'm not sure if I can explain what is happening in the stock market. Against the back-drop of one of the worst economic slowdown, the market has rallied very strongly from the March lows. Considering the over-bought conditions, today's volume in the NYSE was huge. The 12 billion shares traded certainly caught my attention.I thought we were due for a pull-back and then we explode upwards.
I knew my buys in the winter will be rewarded, and I have profited from my sells, but I didn't expect the kind of rally we are seeing. As it is, 201(k)'s have grown to 301(k)'s and consumer sentiment is rising.
My main worry is what is going to happen to all the liquidity that the government has created. And what about the failing banks. Very little has been done to rectify the excesses of yesteryear's. We may have created another bubble. Who knows.
Friday, we get unemployment data. It should be interesting to see how the week ends.
But at this rate, I am tempted to dump another chunk of my holdings. Which I may do so if this madness continues.
5 comments:
Wow. It is mad
I think it was the housing news. My guess is that you should wait. I regret selling BAC at 9:20 yesterday. It closed at 10:38. I'm gonna buy again at some point-and hold. But waiting till end of Friday.Wish I was more active in early March. That may have been the bottom...but I never know.
Dude-as mentioned to you last time. Make hay while the sun shines. You are always talking about the psychology of stock markets. Peeps got money and are used to trading. Saving rates. 2%.
I know some dudes who are making 50% in a week.
On bank shares.
Timing the market will never work-otherwise we'd all be billionaires...
MainaT: I'm feeling badder by the day about BAC.
Willie, Malaysia is also on fire.
PKW, I see that you still have one foot in the stateside. Nice.
Maina, It's a crazy system
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