Obama Defies Pessimists as Rising Economy Converges With Stocks (1 Viewer)

[daybreaker]

You also have Democrats like Bayh retiring. How is Reid doing in Nevada?

More Republicans are retiring than Democrats... What does that mean to you?

 

[BoatsNBeer]

Volume is relatively low, fewer players with big insitutional investors throwing in their bailout money. Small investor generally on the sidelines.

It's actually the opposite. And I don't think the bailout companies are allowed to "play" the stock market with their bailout monies.

 

[dapperdan]

More Republicans are retiring than Democrats... What does that mean to you?

Maybe they've got a lot of old guys in office? Time for some new, vigorous blood to come in for the Republicans. It's time for McConnell and Boehner to step aside. They're descendants of the Delay era, it's time for new lineage for the Republicans.

 

[dapperdan]

It's actually the opposite. And I don't think the bailout companies are allowed to "play" the stock market with their bailout monies.

That chart is a bit misleading when you account for the volume coming from High Frequency Trading.

From January 27, 2010 (so it's recent):

http://www.tradersmagazine.com/news/high-frequency-trading-stocks-volume-104994-1.html

The number of high-frequency trading firms continues to grow, but the volume of shares traded by the important group is waning.

That's the conclusion of a group of exchange executives who derive at least half of their volume from high-frequency trading shops.

"I'm signing account documents at a record pace," Paul Adcock, an NYSE Euronext executive vice president who heads operations at NYSE Arca, told attendees at a recent industry conference. "But those types of accounts struggle when the VIX is where it is."

"High-frequency trading is not going to go away anytime soon," Brian Hyndman, a Nasdaq OMX senior vice president responsible for transaction services, said at the same conference. "But it is no longer in the growth stage. We are probably mid-field." About 55 percent of Nasdaq's volume comes from high-frequency trading firms, Hyndman said, with the amount dependent on the level of the VIX.

Take out 55% of the volume, and what would that chart look like?

Yes, the article quotes Nasdaq numbers, but DJIA numbers are about the same.

 

[BoatsNBeer]

You are an outlier.

Actually I know of at least 3 other people in my office, besides myself, who have poured every available penny into the market in the last 1.5 years. I know of no one who has completely pulled out, which is an extremely foolish thing to do after you lost all your money.

I have actually pulled about 90% of my money out of equities in the last month or so, b/c I feel the market in general is overpriced and ripe for a correction in the near future.

 

[BoatsNBeer]

That chart is a bit misleading when you account for the volume coming from High Frequency Trading.

From January 27, 2010 (so it's recent):

http://www.tradersmagazine.com/news/high-frequency-trading-stocks-volume-104994-1.html



Take out 55% of the volume, and what would that chart look like?

Yes, the article quotes Nasdaq numbers, but DJIA numbers are about the same.

Take out 55% and it's par for the course from 2006-2007 (and this assumes there was NO high frequency trading before, which is not the case as it has for some time comprised a relatively high share of the overall volume). So either way, you can't call it low volume.

 

[Galbreath34]

 

[AppleSaint]

At some point, the President has to be accountable for the policies he ran on as a candidate and then followed through on as President.

And dammit, Obama should have known that he had to solve all of our problems in less than 2 years OR ELSE!

 

[jpcdolphan]

Tell Wilson to get back in there and SEEEELLLLLL!

 

[SaintScott]

Consumer spending up, manufacturing grows

NEW YORK
Mon Mar 1, 2010 2:05pm EST

The Commerce Department said on Monday spending rose 0.5 percent, increasing for a fourth straight month, after advancing by an upwardly revised 0.3 percent in December. Consumer spending in December was previously reported to have increased 0.2 percent.

Analysts polled by Reuters had expected consumer spending, which normally accounts for over two-thirds of U.S. economic activity, to increase 0.4 percent in January.

"The message is continuing progress for the economy, if not as fast as hoped," said Pierre Ellis, a senior economist at Decision Economics in New York.

An industry report said the U.S. manufacturing sector grew in February but at a slower rate than was expected. Analysts said it was still proof the economy is on the mend.

The Institute for Supply Management (ISM) said its index of national factory activity declined to 56.5 in February from 58.4 in January. The median forecast of 80 economists surveyed by Reuters was for a reading of 57.5.

A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 means expansion.

http://www.reuters.com/article/idUSTRE6202E120100301

Ok do the numbers....4 months November, December..I'm sure that Christmas spending had no effect on those months...January, February are the months that some Americans start getting tax refunds and have extra cash to spend, and some of the spending also comes from people that had extra work and additional income over the holidays. These numbers mean nothing, and I would guess that they will drop for the next few months. This administration more than most is putting spin on every number that comes out and saying whatever the result that is "not what was expected". My question is..expected by who? This economy is still in the crapper and no it's not what I want. If this health care disaster is passed it's going to get alot worse.

 

[blackadder]

It's actually the opposite. And I don't think the bailout companies are allowed to "play" the stock market with their bailout monies.

Well, I'm not sure whose stats to believe.

http://blogs.wsj.com/marketbeat/2009/11/18/stock-market-volume-still-a-mystery/tab/article/

http://www.reuters.com/article/idUSN0424406920100104

http://staticorigin.seekingalpha.com/article/172546-low-trading-volume-beginning-to-raise-eyebrows

I'm out on thje sidelines and I know more who are. Don't know anyone daytrading anymore...

401K on auto, that's about it.

 

[dtc]

Ok do the numbers....4 months November, December..I'm sure that Christmas spending had no effect on those months...January, February are the months that some Americans start getting tax refunds and have extra cash to spend, and some of the spending also comes from people that had extra work and additional income over the holidays. These numbers mean nothing, and I would guess that they will drop for the next few months. This administration more than most is putting spin on every number that comes out and saying whatever the result that is "not what was expected". My question is..expected by who? This economy is still in the crapper and no it's not what I want. If this health care disaster is passed it's going to get alot worse.

You are spinning everything from anywhere to frame your agenda.

When are you going to allow facts to determine your reality instead of these illogical gyrations you perform to make reality fit your beliefs.

Where do you get that these numbers mean nothing? Where do you get your basis for saying the numbers will drop? What kind of drugs does it take to believe people have more money after the holidays than before - especially a last minute Christmas in a rotten economy?

Do you have any economics background or are you just spouting bull poopey to try to reconcile reality with your dislike of the evil liberales?

 

[dtc]

I'm out on thje sidelines and I know more who are. Don't know anyone daytrading anymore...

Certainly not like the past, but maybe weektrading?

 

[Mr. Blue Sky]

Actually I know of at least 3 other people in my office, besides myself, who have poured every available penny into the market in the last 1.5 years. I know of no one who has completely pulled out, which is an extremely foolish thing to do after you lost all your money.

i don't understand-- if you've *lost* all your money, how would you have anything left to 'pull out', or keep in?

 

[Rouxble]

btw...I'll go on record as saying that I have no problem with the basic concept of the credit default swaps, provided that: A) they are listed on a public exchange, and B) the institution writing the swap has to put up reasonably sufficient collateral when they write the swap. Same thing as when you write an option, or the need to have sufficient reserves as an insurance company writing an insurance policy. The problems isn't the swap, per se, imo, it is the amount of leverage that is accompanying the writing of the swap. Just my opinion.

A good, short article on how the CDS market helps bondholders to evaluate the creditworthiness of bond issuers:

The problem with simply looking at the difference, or spread, between an issuer's bonds and the risk free rate is that issuers tend to have a lot of different bonds outstanding, each of which could have different prices, and therefore different yields. This means that it's difficult to get an overall, market-based sense of the creditworthiness of an individual issuer looking only to the bond market. This is not the case in the CDS market.

...

Without the CDS market, credit quality would be and was a product of subjective models, since we'd have to look at the spreads on the whole spectrum of debt that a given issuer has outstanding, and then use subjective - but not necessarily arbitrary - methods of averaging them. With the CDS market, we have a market-based measure of the credit quality of a wide variety of debt instruments outstanding for a given issuer. This makes the credit quality of an issuer more transparent, not less. Now ask yourself: what kind of issuers does this level of transparency threaten?

http://www.theatlantic.com/business...cs-dont-get-about-credit-default-swaps/37470/