|Forum - Wall Street Pit
||Stock Due Diligence for All|
|From: Ry5577 (Rep: 900) reply to hedgejob||Date: 05/26/2009 21:19|
|Forum: Wall Street Pit - Msg #1647520||Thread #672628632 (Rec: 2) |
|Re: Cramer: The Real Reason Behind Tuesdays Move|
i hate cramer i think he's a total buffoon, but he's sort of right....except that this is a 100% manipulated bull market, theyre just creating the image of a bull market by any means necessary, and for 2 reasons:
1) if the market goes up and peoples retirements and investments rise, people will start to feel "wealthy" again and go back to doing what they do best, spend money....this marginal increase in consumer spending will put some footing under the GDP declines and hence it stimulates the economy
2) so companies with high debt loads who need to raise capital to survive can do so thru decently priced secondaries....this way all these "too big to fail" companies pestering the government for bailout money can shut the F up and raise the capital themselves
this whole thing is just a backdoor method of "economic stimulus"....the government cant exactly come out and tell the american people, "hey we're just gonna manipulate the market higher so everyones happy" otherwise the sheeple could freak out over the idea that markets can and are manipulated.
moral of the story: dont fight this type of manipulation, its the most powerful kind, and itll steamroll any and everyone whose on the wrong side of it....the reasons for shorting this market are valid, however the forces behind this "rally" could care less about logic, they just want the market higher.
im long and will continue to stay long until the market closes under the 20 day EMA, thats the moving average theyre using to buy on dips, its bounced off that level 6 times now since we ragained it off the march lows...until that breaks, the rally continues.
Ry5577 Theory: Everything thing that can be manipulated, will be manipulated.
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