Markets get a lift as the words "constructive" and "productive" leave the mouths of...

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wmateri Comments (236)
 
What are they going to say? "We don't really agree on much but we'll keep making it look as if we can find some common ground"? The surprising thing is how rapidly the algo's took the S&P500 up 10 points on nothing more than this. If you don't think the markets are vastly unfair to the average investor, this should be all the proof you need (unless you think you can react to that kind of change as quickly).
16 Nov 2012, 11:52 AM Reply Like

Drew Robertson Comments (233)
 
WTH is an average investor doing investing in 10 point swings of the S&P futures? Fairness has nothing to do with it.
16 Nov 2012, 11:56 AM Reply Like

wmateri Comments (236)
 
Many of us stood by helplessly as common investments tanked by 40-50% in 2008-2009 showing that when this kind of nonsense goes on for a while, it can affect even quite conservative investors. Since last December, I've watched every market in the world oscillate wildly on nothing more than utterances from Bernanke or Draghi which completely failed to recognize the overall seriousness of the economic situation. How can one invest in a nice solid company with even a 5% dividend when you can easily lose more than that in capital in a week or two on some crazy thing said in a press conference? In addition, stock picking is almost impossible when markets are correlated at 70-80% as they are now. I would like to be a good old-fashioned investor looking at P/E and dividends but that makes no sense in the current market. It is no wonder average investors are staying away in droves.
16 Nov 2012, 01:09 PM Reply Like

Joe Springer Comments (1224)
 
Don't believe the hype, get short:

http://seekingalpha.co...
16 Nov 2012, 11:55 AM Reply Like

jlalpha Comments (22)
 
Happy talk. What will they think of next?
16 Nov 2012, 12:03 PM Reply Like

fotd Comments (28)
 
I'll gamble a little on this being a buying opportunity. It is in everyone's interest to compromise. No presidential election to game next year. And Tea Party comeuppance in the last election.

There is too much pessimism right now.
16 Nov 2012, 12:06 PM Reply Like

Padawan learner Comments (54)
 
It's actually a little funny in a sick sort of way if you think about it. Rockets entering Israel, Oct Industrial production misses pretty big, but the market goes up because "constructive" and "productive" is uttered in a meeting by our political leaders.
16 Nov 2012, 12:13 PM Reply Like

Michael2343 Comments (450)
 
Knee jerk reaction.
16 Nov 2012, 12:18 PM Reply Like

Joe Springer Comments (1224)
 
It certainly gave a lift, but it's a tug-of-war right now and the lawmakers just used their only bullet short of an actual deal, if things turn bearish it could be a long drop until they hammer something out..
16 Nov 2012, 12:19 PM Reply Like

Agbug Comments (860)
 
Nancy Pelosi says something to the effect of "We should really set a deadline before Christmas". Thank you, Nancy - for confirming my opinion about the lot of you in DC. We look at it as our financial future at stake, the future of the U. S. economy, the negative impact to peoples jobs, marriages, families when economies crater. These entrenched politicians? Just another day at the office. Billions of dollars at stake? Oh well, that's what we do here in good ol' DC. What's really important to them, their own self serving interests, i. e., I don't want to be here hashing out our nations future and be late for Christmas. I realize Nancy is the poster child for this attitude, but they all make my pulse quicken.
16 Nov 2012, 12:30 PM Reply Like

aarc Comments (1906)
 
Looks like a very good day to go long.

- AAPL: http://bit.ly/Wf3Mpb

The 20ema on the monthly chart is the first major front-line support for Apple - for the Monthly Chart Trend Traders since the ADX is still in a very strong trend to the upside. Target for the Holy Grail Trade Setup is the $705 Double Top.

I bought some AAPL again today (at $509 and $514) as AAPL touched the 20ema Support - and immediately got kicked up.

Also bought some YM and NQ Futures today as SnP500 tested the Feb 14, 2011 Support of 1344 which is the termination point of the July 2010 to Feb 2011 1-2-3-4-5 Rally.
16 Nov 2012, 12:35 PM Reply Like

Whitehawk Comments (2766)
 
Ah, that constructive cliff. How interesting the coincidence between a 1340 bottom today and the start of the meeting.
16 Nov 2012, 12:45 PM Reply Like

minecanary Comments (214)
 
There are bigger problems then the cliff. 6 months out the bulls would be happy to be at 1275 no matter what happens w/this sideshow.
16 Nov 2012, 02:20 PM Reply Like

bergerboatman Comments (7)
 
any use of positive terms this early in the dealmaking is a significant indicator of willingness to meet at the 50 yard line, so in spite of the stupidity of either side's dogmatic stance, they will hammer out a compromise before 1-1-13, but then we have the next big bank crisis looming in 2014 to deal with, that is what concerns me more, not a 5% rise in my cap gains actual cost.
16 Nov 2012, 02:42 PM Reply Like

tom_t Comments (153)
 
Whatever compromise they hammer out will be watered down. We'll see the photo op of Obama, Boehner, and Reid crowing about how they shaved $1 trillion off a $16 trillion deficit. And then they'll all start their Christmas vacations.
16 Nov 2012, 03:36 PM Reply Like

wmateri Comments (236)
 
Also, the $1 trillion in savings will take place over 8 or more years, so really nothing of any significance. However, the markets will jump for glee at this until the next reality check. Besides, if we can't trust either side to actually stick to a deal they made previously (i.e. August 2011) then is any deal made now really meaningful? More importantly, how will private and foreign sovereign bond buyers view this? It suggests to me a steadily growing debt moving toward the unsustainable 90% of GDP that freaks out investors as in Spain.
16 Nov 2012, 04:06 PM Reply Like

Houston11 Comments (3)
 
Even if we avert the so called fiscal "Cliff" would not change the fact that the next year isnt going to bring anything but misery in the markets.
16 Nov 2012, 04:16 PM Reply Like