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/biz/ - Business & Finance


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18809266 No.18809266 [Reply] [Original]

Time to get out of stocks before the next big dump.

https://www.investing.com/analysis/fed-cut-equities-stimulus-86-this-week-and-stocks-are-falling-200523327

>Fed cut stimulus by 86% this past week

What does this mean? The Fed has been pumping money into equities starting late March, effectively causing an artificial and massive trend reversal when coupled with short squeezes cross-market. This was to prevent a major capitulation of 50-60%, that has more or less been achieved. But a retracement back to SPY $220 and a bit below is to be expected over the course of the rest of this year.

Notice the lack of smug Bobos these days? The shorts are out of play, the Fed has turned off the spigot, and the market is on its own now. There is no real demand and it's going to crater soon enough. Plan accordingly.

>> No.18809290

>>18809266
Nice digits

>> No.18809326

It's just a flu

>> No.18809355

>>18809326

~30% unemployment and -10% GDP for the year is not made up. The market was way overbought as is, before this fucked shit showed up.

>> No.18809483
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18809483

>>18809355
>>18809266

>> No.18810001
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18810001

>>18809266
fuck

>> No.18810002

>>18809355
Casting pearls before swine

>> No.18810028

>>18809266
>Time to get out of stocks before the next big dump.

So how do more sophisticated and intelligent institutional investors NOT have access to this information exactly as you do?

>> No.18810075

>>18810028

They have not been buying, anon. If you've been paying attention people are confused as to how we've rallied this hard. Not too hard to figure out, Fed pumping + low volume + short squeezes, that's enough to trend reverse for a while.

Timing is a bitch, absolutely, but here you have a concrete sell flag. The Fed pumping is over.

>> No.18810119

>>18810075
But there's no better place to invest your money. Generally you'd buy bonds... but with such low interest rates bonds have incredibly low yields. There's really nothing else to buy aside from stocks.

And idk if looking at macroeconomic shit really helps, there's a million sophisticated institutional investors who have this information as well.

>> No.18810257

>>18810119

I don't disagree with you, that's surmised to be a contributor right now. People without much recourse are just buying stocks anyway. But idk why you're assuming smart institutional money is in play here, they literally got the fuck out in March. That's why it dumped 35%. And they have remained on the sidelines.

And so we must gauge the direction of the market from a new set of factors. The loss of this major catalyst in the Fed would put this rally on super shaky legs.

>> No.18811085

Finna turn 3.3k into 10k with tvix and then go all in on UPRO

>> No.18812067

No I have a deferred comp I won't touch until 2055

>> No.18812433

>>18810028
You mean all the boomer retail investors buying on robinhood? Or the same hedge fund dinosaurs that missed the virus & obvious lockdown for nearly 3 months after fucking /pol/? Yeah, I really trust their judgement to accurately price things in.

>> No.18812459

>>18812433
>You mean all the boomer retail investors buying on robinhood?

Retail investors don't really move the market.
>Or the same hedge fund dinosaurs that missed the virus & obvious lockdown for nearly 3 months after fucking /pol/?

I don't think they missed it they just priced in the recovery and realized that the virus isn't really as big of a deal as it seems plus the economy isn't the stock market

>> No.18812525

>>18812459
They move it when every retard that saw the drop decided to be a genius & try to reverasal trade. Not to mention yeah, obviously people benefiting from stimulus money.

>They priced it in
>t. Muh magically price in all events ever meme

Really? Then why did the market drop a record amount like it did? Come on, they panicked, then the Fed supplied hopium. That's it. The effects of this aren't going away by Q4, it'll affect things out to 2021 at least (easily). And while I know that the market hates fundamentals now, you can't look at the EPS in January & tell me with a straight face it wasn't already overvalued.

>> No.18812603

>>18812525
>They move it when every retard that saw the drop decided to be a genius
It's said that retail investors make up a small percent of the market, their money is in mutual funds and pension funds for the most part not personal trading accounts.

>>t. Muh magically price in all events ever meme

Not all events but they have access to the same if not better information as you do. At first the market panicked due to the uncertainty, then the unknowns were (mostly) accounted for, and instead of millions dead it's looking like a few hundred thousand.

Not to mention people are paying for the future earnings of companies 10-20 years into the future, not their immediate revenue shortcomings following COVID19.

>it wasn't already overvalued.
Nothing better to invest in. Bonds don't pay shit, where else to put money?

>> No.18812707
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18812707

>>18809266
I'm still smug bro

>> No.18812760

>>18809326

actually, it's not a flu at all, it's nothing like a flu.
it's clearly something else.

>> No.18813027

>>18810075
>concrete sell flag
titanium buy flag spotted

>> No.18813070

>>18810028
You can't move $1b as quickly as you can $1000. If you tried, you'd crash the market before you're done selling 1/100 of your shit. There are also laws against doing that even if you wanted to. That's precisely why it's needed, for them to finish unloading, to let the market go back up a little before the next leg down.

>> No.18813097

>>18809266
thanks for posting this m8

>> No.18814124

bumpo

>> No.18814171

>>18809266
Don’t care, nigger. Not selling my SPY calls until we reach 300

>NOT SELLING
>NOT SELLING
>NOT SELLING

>> No.18814183

>>18809266
Are you niggas just buying spy, Amazon, and Tesla or some basic gay shit?

>> No.18814223

>>18814183
I exclusively buy TQQQ, FNGU, or SVXY when bullish

>> No.18814276

>>18814183
Those are basic shit tho

>> No.18814436

>>18814276
I guess I should've said some [*other] basic shit. The implication was why bother.

>> No.18814674

>>18812433
this desu

we prepped in December, dumbshits

>> No.18814676

>>18809266
Long USOI