Stock market.... What are you doing?

[smokingman]

So we are no different than Zimbabwe!

I would say even worse. They purchased stocks. Our fed is not even doing that,but purchasing the debt of corporations....without actually owning them.

 

[smokingman]

https://www.frbatlanta.org/-/media/documents/cqer/researchcq/gdpnow/RealGDPTrackingSlides.pdf

New Federal reserve guidance for GDP updated 5/15/2020

-42.8% for quarter 2.

Some standouts.

Equipment -72.9%
Imports -45%
Retail -42%
Industrial production -43.6%
Residential investment -63.6 ( I looked for more information on this category because I was unsure what it actually measured,appears to be housing though).

Total gdp average for May 15,2020 is -42.8. Up from -12.1% from the April 30 report.

 

[AtTheMurph]

I would say even worse. They purchased stocks. Our fed is not even doing that,but purchasing the debt of corporations....without actually owning them.

The Fed will buy company stocks and stock ETFs. Just give it until the next time the market drops 10%. Then it will be printing presses at full steam!

 

[AtTheMurph]

https://www.guggenheimpartners.com/...-are-all-government-sponsored-enterprises-now

Doesn't seem like a very Capitalist way to operate. The government and the Fed have decided to end the era when things could go belly up or rich people could lose money.

This is going to end very badly. The mis-allocation of capital, the rich getting richer and richer and the middle class is going to be destroyed. It's is exactly the conditions that gave rise to Communism in countries across the globe. We are now them.

 

[smokingman]

Today 5/18/2020 marks a special day. Percentage wise the DOW has never performed this well for any 5 week period in all of history.
We also hit 142% market cap to GDP valuation today.


Over at the Nasdaq PE is today puts it at 22,a new record beating last weeks record close. It also closed less than 3% from all time highs.

https://www.foxbusiness.com/markets/us-stocks-may-18-2020

[h=1]Dow surges over 900 points amid coronavirus vaccine progress as lockdowns ease[/h]

I am sure it had nothing to do with....https://www.newyorkfed.org/markets/new-york-fed-actions-related-to-covid-19

 

[ziggy]

The Fed is blowing up the money supply at an astonishing rate. One year - growth of 21.6% (M2). In the four weeks ended on May 4th, the annualized rate was about 60%. There is an enormous amount of liquidity chasing stocks. Rising stock prices seem likely to continue as long as liquidity is supplied by the Fed, (until it doesn't). The thing is, every time there is a meaningful pull-back in stock prices, the Fed pumps in the money to bring them back. It is wonderful for investors, but is not a sane practice. The stock market really, really is a casino. About the only losers are the short sellers.

 

[nonobaddog]

And yet they are sitting on most of $500 Billion already in the stimulus package that was already passed. Only $37.5 Billion is actually doing anything for anybody.

Of course Pelosi is involved in this cluster****.

$500 Billion Coronavirus Relief Fund Has Barely Been Used | The Fiscal Times

 

[jd4320t]

Dang. I should’ve bought some Moderna back in March.

 

[smokingman]

Dang. I should’ve bought some Moderna back in March.

Why?
Looks to be a classic pump and dump to retail investors.

https://www.zerohedge.com/markets/moderna-plunges-erases-all-vaccine-hope-gains

rinse and repeat for most pharmaceuticals.

 

[foszoe]

100% return is pretty good.

Why?
Looks to be a classic pump and dump to retail investors.

https://www.zerohedge.com/markets/moderna-plunges-erases-all-vaccine-hope-gains

rinse and repeat for most pharmaceuticals.

 

[jd4320t]

Why?
Looks to be a classic pump and dump to retail investors.

https://www.zerohedge.com/markets/moderna-plunges-erases-all-vaccine-hope-gains

rinse and repeat for most pharmaceuticals.

couldve bought in the 20’s and sold at $80. It’s pretty simple.

 

[smokingman]

couldve bought in the 20’s and sold at $80. It’s pretty simple.

You are correct in saying it is simple...and a few did buy at 20 and sold at 80 making millions.

Moderna's stock price skyrocketed as much as 30% on Monday after the biotech company announced promising early results for its coronavirus vaccine. As ordinary investors piled in, two insiders were quietly heading for the exits.

Moderna's chief financial officer and chief medical officer executed options and sold nearly $30 million of shares combined on Monday and Tuesday, SEC filings reviewed by CNN Business show.

https://www.cnn.com/2020/05/22/inve..._content=2020-05-23T17:22:03&utm_source=twCNN

 

[foszoe]

Well, I only made a few thousands....

It's still in the 60s to 70s. Is this post reporting news of legal insider trading? An attempt to form a judgement of the action?

You are correct in saying it is simple...and a few did buy at 20 and sold at 80 making millions.

Moderna's stock price skyrocketed as much as 30% on Monday after the biotech company announced promising early results for its coronavirus vaccine. As ordinary investors piled in, two insiders were quietly heading for the exits.

Moderna's chief financial officer and chief medical officer executed options and sold nearly $30 million of shares combined on Monday and Tuesday, SEC filings reviewed by CNN Business show.

https://www.cnn.com/2020/05/22/inve..._content=2020-05-23T17:22:03&utm_source=twCNN

 

[muncie21]

Well, I only made a few thousands....

It's still in the 60s to 70s. Is this post reporting news of legal insider trading? An attempt to form a judgement of the action?

In this case it's 'legal' insider trading. Although as the article mentions, it doesn't paint a good picture for the company when Sr. Execs are cashing out at the same time the company is announcing a break-through vaccine/drug.

 

[smokingman]

Well, I only made a few thousands....

It's still in the 60s to 70s. Is this post reporting news of legal insider trading? An attempt to form a judgement of the action?

Not really a judgement of them selling stock.The selling does make one wonder why they would sell if the product that sparked the buying spree was at all close to the media hype.

 

[nonobaddog]

You are correct in saying it is simple...and a few did buy at 20 and sold at 80 making millions.

Moderna's stock price skyrocketed as much as 30% on Monday after the biotech company announced promising early results for its coronavirus vaccine. As ordinary investors piled in, two insiders were quietly heading for the exits.

Moderna's chief financial officer and chief medical officer executed options and sold nearly $30 million of shares combined on Monday and Tuesday, SEC filings reviewed by CNN Business show.

https://www.cnn.com/2020/05/22/inve..._content=2020-05-23T17:22:03&utm_source=twCNN

Well that sucks! I was hoping for a good vaccine out of them instead of a pump and dump.

 

[Mcdegreat]

Trying to gain the right knowledge to trade Forex, because Robert Kiyosaki said "it is pointless investing in what you don't understand" in his book, Retire Young, Retire Rich.

I find price action very interesting.

 

[CHCRandy]

Trying to gain the right knowledge to trade Forex, because Robert Kiyosaki said "it is pointless investing in what you don't understand" in his book, Retire Young, Retire Rich.

I find price action very interesting.

I know nothing about Forex. I have come to the conclusion I could probably make a lot more money just starting to trade SPY options that are 1-2 days out of expiration. Pretty easy to make 100% a day on them trades 60-80% of the time. My problem is I dont have enough faith and usually go kind of small on them trades.....plus it gets expensive buying and selling them with TDA.

 

[CHCRandy]

Market is screaming back.....has everyone recovered your losses?

 

[smokingman]

US stocks are trading at 143% market cap to GDP with a forward P/E north of 24....and increasing. I guess 4+ Trillion in 8 weeks from the fed made everything great again.

Corporate debt keeps setting almost daily new records as more companies are borrowing as both a buffer and to do stock buybacks.

This madness will end badly.