Market recap: Stocks finished near session highs, and the S&P tallied a fifth straight...


Market recap: Stocks finished near session highs, and the S&P tallied a fifth straight record close, as profit outlooks from companies including Electronic Arts helped boost sentiment. Industrial metals moved higher after China's better-than-expected trade surplus, which saw strong improvement in imports and exports. Treasurys rose despite a tepid auction; gold climbed 1.7%.
Comments (12)
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    Amighty and Powerful OZ (sorry I mean Bernanke) keeps the squeeze going and QE induced gains to infinity and beyond! CNBC runs specials now on stocks for QE. This will end ugly-just like 1999 and then all the CNBC cheerleaders and Bernanke fans will blame him and say we all should have seen this bubble
    8 May 2013, 04:23 PM Reply Like
  • Ben Bernankes friend
    , contributor
    Comments (475) | Send Message
     
    Of course, how else do you expect it to happen!
    8 May 2013, 04:35 PM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
     
    Price to Sales today 1632/1108 (estimated TTM) = 1.47....
    When the S&P 500 hit its high on October 9,2007 this ratio was
    1.55....1565/1005...we are high but not nosebleed levels
    8 May 2013, 04:44 PM Reply Like
  • Nico Inberg
    , contributor
    Comments (119) | Send Message
     
    Today I published an article about the S&P reaching 1875 in 2014.
    If markets keep rallying like this we might experience it earlier than I thought...

     

    http://seekingalpha.co...
    8 May 2013, 04:48 PM Reply Like
  • cyrus trask
    , contributor
    Comments (188) | Send Message
     
    "This will end ugly-just like 1999 and then all the CNBC cheerleaders and Bernanke fans will blame him and say we all should have seen this bubble"

     

    This probably will end badly, but from much higher levels.

     

    In 1999, the Fed started trying to slow the economy. They raised interest rates 6 times before the market finally cracked in 2000.

     

    We're nowhere near the valuations or the investor euphoria of 1999. And the Fed is nowhere near trying to let some air out of
    the bubble.

     

    It's way to early to leave this party.
    8 May 2013, 04:49 PM Reply Like
  • Nico Inberg
    , contributor
    Comments (119) | Send Message
     
    As long as the Fed keeps playing, investors will dance. valuations indeed aren't that high, back in 2001 the S&P traded around 46 times earnings. The thing is, in this crisis, most companies are doing quite well. It's the government and the western consumer who are suffering
    8 May 2013, 05:11 PM Reply Like
  • optionsexpert
    , contributor
    Comments (482) | Send Message
     
    That's been the trend since the 70's.
    8 May 2013, 08:45 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    Are we going to have a new record high every up day on the S&P from now on?
    8 May 2013, 07:12 PM Reply Like
  • mobyss
    , contributor
    Comments (2595) | Send Message
     
    Yes.

     

    The market will never go down again. A good day will be +1%, and a bad day will be +0.25%.

     

    QE is perfect and will work perfectly. There will be no adverse effects from printing trillions of dollars and expanding the Fed balance sheet in unprecedented ways.

     

    Someone posted about writing an article calling for S&P 1875, by 2014. This is much too conservative at the beginning of this brand new bull market that just started a few days ago, despite the market having just gone up by 140% in the last four years.

     

    The S&P will hit 1875 by Labor Day. From there, it will hit 2000 by Halloween, 2150 by Thanksgiving, and 2370 by Christmas. Next year as QE is increased to $185 Billion per month, the S&P will return 65%, closing 2014 at almost 4000.

     

    Another year of QE in 2015 (probably increased to $285B per month) will result in S&P 7600 by New Year's Eve.

     

    The largest down day over the next 18 months will be a -0.0002% day, and that will only be due to a guy dropping his cheesesteak on his terminal and accidentally selling a SPY future.

     

    The market will expand until the PE is at least 80, since it only hit 46 back in 2000 and now we have QE which as I said before will work perfectly.

     

    Now, I'm off to take out a 125% home equity loan on my house, so that I can put it all (plus my kid's college funds) into a leveraged S&P ETF. I'll expect to make at least 80% this year since this is just the beginning of a bull market and the market will hit 1800+ and a lot more any day now...
    8 May 2013, 07:41 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    Sounds legit, guess its time to try to secure a 10^8% leverage on call options! lol
    8 May 2013, 07:45 PM Reply Like
  • cmmillsap
    , contributor
    Comments (2) | Send Message
     
    You must be drinking the Feds cool aid . Yes QE will keep the indices moving up for some time, but not the absurd levels you predict.
    8 May 2013, 09:13 PM Reply Like
  • edsanville
    , contributor
    Comments (73) | Send Message
     
    @cmmillsap

     

    You might find this article of interest:
    http://bit.ly/171jedF
    8 May 2013, 09:36 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs