Pure manipulation... how are we supposed to invest?
The markets are not following any earning or basic supply-demand rule... The price is from pure manipulation by the big investment banks and fund managers.
LNKD, with PE of 1900x, went up 5.5% today. GOOG, with PE of 19x, went down 1.4%... does that even make sense? ORCL announced good earning, then stock plunged after hour.
Then look at the sudden 1% increase at 3pm today from HFT Dow went from -150 to 0 within 30sec! Due to fake Greek headline "Greece Agrees on Austerity Plan With EU" released to move the market. No, the vote is not until next week! So that was simply the plan, yet to happen... Austerity Plan is requested and needs to be passed in the parliament. So how is Greece different today from yesterday? The problem is still there. That headline was a pure lie!
With these manipulators... the stock market is really becoming a casino. You go to sleep then to find out your portfolio dropped 1.5% overnight while you were sleeping. The stop loss kicks in, then they rebound back to 0%, getting more suckers to buy in, rinse and repeat.
Is it me or is it really different now? I don't remember stock markets acting like this about 10 years ago...
It's pretty much come down to who can publish junk through the newswires (almost anyone) and who can parse/validate/trigger off those headlines fast enough (almost anyone). The result is a violently indecisive market, but it still usually trades within range. I think we need a few more down days, but eventually the support levels will get taken out. Then the indices will look like a waterfall. The only reason I can think of the market to go up is if the US agreed to lift its debt ceiling and people in Greece stopped protesting against a bailout.
Yesterday 3000 nurses showed up on Wall Street. "To remedy the budget crisis and its impact on Americans, organizers are pushing for a small fee on the trading of bonds, options, credit default swaps, futures, and derivatives to save crucial social programs from falling victim to the impact of Wall Street’s missteps. Organizers say the tax could generate $350 billion a year." Good idea? Bad idea?
Im far from a analist,and im not going to pretend to know anymore than i do,which is probably close to zero,but i think were in for a rough patch and the tipping point is close,so many people lost half there portfolios a couple yrs ago and nobody has it in them for that to happen again,the jobless data thats came out,and ben and the feds looking like beaten dogs(guy cant even look the american people in the eye barely in press confrences)Obama and the hope machine are scrambling and there (q) tactic for recovery looks now like a disaster.
And retail investors will not take one for america again=selloffs,dont think were there yet but a couple more weeks and a few more negitive news stories,but than again im just a joe scmoe,with that being said maybe were in for an epic rally.I read today something like 1/9 americans are still being issued food stamps,that ratio hasnt been seen since the 30s,ironicly washington dc is one of the highest states in the data.Not good!!
How are you supposed to invest in a market like this? Simple, identify companies that you feel have solid fundamentals and you feel confidant holding for decades. Buy in, and ignore day to day price fluctuations for the next 20 years!
Somehow, I suspect that simple answer was not what you were looking for.
I only watch the market to see if it's down far enough. That's when those great dividend growers go on sale and I can buy at great valuations. All the rest is just interesting to watch and listen to the tv comments.