Stocks looking parabolic

Discussion in 'Technical Analysis' started by Corky5, Jul 10, 2020.

  1. ElCubano

    ElCubano

    they are not the same. DOZU would never suggest going short from my readings of his posts, never.
     
    #21     Jul 10, 2020
  2. piezoe

    piezoe

    Mosler is a fascinating character because of his very wide ranging interests. In my opinion he is a clear and concise writer. It seems he was greatly influenced by L. Randall Wray and Bill Mitchell.

    I just looked him up on Wiki, his is a truly fascinating career. Very unusual!
    https://en.wikipedia.org/wiki/Warren_Mosler
     
    #22     Jul 10, 2020
  3. in 'free' market prices drop on their own weight. oversupply and not enough demand or cash to buy. and huge profits.

    remember the gov't is giving you the gov't money not their money. to people. or corporate welfare.

    as for the real economy is gov't incompetence when many retailers are going bankrupt with no fault of their own or the 'free market' Trump cannot contain the virus etc. and and the corvid is worse off than march of this year.

    What you have is the gov't GIVING money to billionaires with the public money by buying there overpriced or worthless or overpaid for bonds that a 'market' or individual would never pay that price for it. in the real market or private market for money. nobody will lend you money at 1% nobody okay to buy equities to speculate or et or anything

    As for long term retirement plans and pensions , they plan no selling only buy at average down cost. so they paying more for samething. they are being ripped off and they don't know it.

    Also about fake scam fraud markets. Religion or 'state' relgion is a scam too but people play along with it. cause they are force to. People like to believe in BS. cause it feels good. just your religion is BS.

    Religion and politics especially in many countries is run big business .and lot of money in it.
     
    Last edited: Jul 10, 2020
    #23     Jul 10, 2020
  4. piezoe

    piezoe

    You seem to harbor a few misunderstandings re the fed.

    The Fed does not buy equities, but recently has been authorized, I believe, to accept some equities as collateral. Typically, in the past, they have only accepted Treasuries as collateral, During the financial crisis, however, the Fed purchased discounted CDOs outright from banks and credited the banks reserve accounts.

    The Fed always lends below "market retail rates." The fed does not lend directly to consumers or businesses. Most lending to banks however is from another bank. This occurs at a negotiated rate which is also below "retail market rates" These rates may be considered the wholesale price that banks must pay for the money they lend out at higher retail rates. Banks pocket the spread between the wholesale rate at which they borrow money and the higher retail rate at which they lend it out. Typically the Federal reserve has managed aggregate bank reserve account balances to target a specific rate for between bank lending. This target rate is the "fed funds rate," and loans between banks are at rates near this funds rate.

    The Fed funds rate is historically quite low, that's true. The fed, not the U.S. fed anyway, does not, however, "buy the equities market." The fed does buy and sell U.S. treasury bonds on the secondary market. The same market you could buy them on. This market is subject to competitive prices and price discovery, however the fed can dominate this market if it chooses to. The fed also assures that all Treasury bond auctions in the primary market will clear through bank reserve accounts.

    When the Fed Funds rate is low, the rate at which banks lend out is correspondingly low, this might affect margin rates which brokers charge and could be a factor in driving the market up. But probably a factor that is psychological in nature is the most important factor in driving the market higher, or lower, than could be rationalized based on the current or the projected near-term economy.

    You have heard it said that "the market is always right." In a trivial sense this is true. In the sense, however, that equity prices can seldom be rationalized on other than uncertain future earnings and returns, often requiring irrational assumptions, the market is nearly always too high or too low. In other words, the market is nearly always wrong, or said another way, "the market is nearly always irrational." Recognizing this is a first step toward successful equities trading or investment. One should not expect rational prices. In the very long run however, the market does have a way of correcting its excesses in both directions such that its mean, long-term return is rational. Long term, buy and hold investors are relying on this latter feature.
     
    Last edited: Jul 10, 2020
    #24     Jul 10, 2020
    vanzandt likes this.
  5. Cuddles

    Cuddles

    #25     Jul 10, 2020
  6. S2007S

    S2007S

    #26     Jul 11, 2020
  7. uau2137

    uau2137

    What would be a publicly available go-to source for listed companies in China? May be as detailed as Yahoo Finance for US Stocks? Preferably in English:)
     
    #27     Jul 11, 2020
  8. Market is no more works as Technical it behave as Fundamental look as shares like Tesla,Cipla,Lupin some of Pharma Industry
     
    #28     Jul 11, 2020
  9. vanzandt

    vanzandt

    Here's a question for you....

    And understand this is a purely hypothetical situation for the purpose of keeping things simple.

    Say I own a lemonade stand that generates for me $50,000 per year. But its not just any lemonade stand. I have an ultra top secret formula, unreplicable for the foreseeable future, an artistic motif that people immediately love and remember, and I also have the formula for exactly where to locate my stands so that each new location will also make $50K/year guaranteed.

    I open 3 more and now 2 years later I'm making $200K/year after all the expenses but I'm maxed out time-wise as a single person managing 4 locations. Now say I have a solid business plan that with 80% certainty has identified over 200 locations nationwide where my proprietary lemonade stand formula will execute exactly like the first 4.

    Now.... I decide I want to sell the whole operation and move on to something else. I put the whole thing for sale... its trademarked, the formulas are in place, the locations are secured... and again just assume there can be no competition for years to come.

    You're a young aspiring entrepreneur with unlimited access to funds and you happen to like running lemonade stands. What would you pay me in $'s for my business?

    Every 4 locations will cost you $50K/year for SG&A. So 20 new locations will make you $750K/year.
    200 will make you $7.5MM/year.

    What's the business worth?

    Now say you have every reason to believe it can be replicated in more than 200 locations... perhaps 1000. Now what's it worth?
     
    Last edited: Jul 11, 2020
    #29     Jul 11, 2020
  10. yc47ib

    yc47ib

    Wonder where is dozu888, he predicted the qqq very well
     
    #30     Jul 12, 2020
    jl1575 likes this.