Wednesday, January 18th, 2017

This is not 2008

Those of you waiting for the market to crash and burn, I got news for you. This is not 2008. We don’t see roller coaster rides 400 points up and 600 points down. It used to be that a 300 point movement in DJIA was considered nothing. Not any more.  Not now. Since Obama administration took over, SEC has tightened so many rules and has kept  naked shortly selling off the books. There is a great amount of scrutiny and oversight, and the Wall street had to give up its shenanigans and crooked acts it once owned. Hedge Funds have stopped shorting the markets  and killing retail investors in the wake. Much has changed since 2009.

Since March 2009,  DJIA, SPX, COMP all have been riding a tame and meek bull. The market has shown lots of stability and very little volatility. In fact VIX has been steadily dropping this whole year, making these markets very predictable and easy to trade. There is a certain amount of tight range trading and smaller intraday movements overall. The market barely moves 100 points up or down. Its very orderly and stable. But the market keeps climbing higher, as the economy improves and comes back to life.

There are those who are still sitting on the sidelines, while huge amounts of cash has been pouring into the markets, those with sweaty palms and deep pockets. Many fund managers have been under invested and now they feel like they have to invest, so they don’t miss out in the boat. So they are buying up stocks and this again is propelling the markets higher and higher.

The bears still feel they have a shot, but this isn’t 2008. Short selling constantly, is a dangerous line of work. The markets are now trading all time high for 2009. There will be pullbacks, but the great crashes of 2008 won’t happen.  There is a pretty obvious reason for that. If Obama administration wants to give an air of confidence and stability they will first take care of our financial markets. This is exactly the first thing they have done, and they will continue to do so, no matter what you think about our Governments intervention. In other words Tim Geithner is jockeying the BULL and rampaging the bears


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  1. […] sitting on lines and hoping the gravy train will hit you in the face, it never will. See my post , this is not 2008. It speaks the truth. I am trading and making money, and with prudent investing and risk management […]

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