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Latest beatdown the trend or just a head fake?

gringott

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I put my "investment" money into limbo (out of the market) a little bit ago. Saw this "correction" yesterday. Hit Amazon, Netflixx etc, the shit the big boys own tons of.
Do you think this is the start of a big bubble deflation, or is this just another head fake so they can shear the sheeple?

Thoughts?
 

Oldmansmith

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Dunno, bought SILJ at the close. Due for some kind of bounce in the broad market.
 

Jodster

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I put my "investment" money into limbo (out of the market) a little bit ago. Saw this "correction" yesterday. Hit Amazon, Netflixx etc, the shit the big boys own tons of.
Do you think this is the start of a big bubble deflation, or is this just another head fake so they can shear the sheeple?

Thoughts?
Too many factors to list, but I think this correction goes deeper than it is presently.
Since the financial crash of 2008-9 and the Covid crash of March/April 2020, the fundamentals have gotten worse.
The only thing that’s prevented a catastrophic depression so far, has been record money printing. 40% of all US debt has been “printed” in the last two years. The forces of Inflation and Deflation have become too unstable to safely balance.
The final wobbles of a tight rope walker, just before he falls, is the best analogy I can think of.
My humble strategy is to be 50% cash and think like a Rothschild. Wait until there is blood in the streets, and pick up stocks for pennies on the dollar. I missed April 2020 but I’m not gonna miss the next one. . .
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jelly

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General stock market is rolling over, IMO. I don't think we'll see a crash, but a whip-sawing bear market this year. Similar to 2008 - it was bad, but it wasn't a crash. Just a bear market.
Assuming the fed actually does follow through with the taper. The Fed pumping is literally the only thing keeping the market going up. Once that stops, everything stops. It really is that simple. Earnings don't matter. Growth doesn't matter. The only thing affecting the stock market at this point is the federal reserve.
 

Jodster

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General stock market is rolling over, IMO. I don't think we'll see a crash, but a whip-sawing bear market this year. Similar to 2008 - it was bad, but it wasn't a crash. Just a bear market.
Assuming the fed actually does follow through with the taper. The Fed pumping is literally the only thing keeping the market going up. Once that stops, everything stops. It really is that simple. Earnings don't matter. Growth doesn't matter. The only thing affecting the stock market at this point is the federal reserve.
Hey Jelly, even in a whip saw bear market, there’s money to be made. We doubled our portfolio in 2009 being contrarians. How do you see this cycle playing out?
Guesses on what will stay strong or even be a 2-3 bagger?
 

Oldmansmith

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I might regret it, but I bought more Netflix and Intel at 3:00 yesterday. A 23% drop in Netflix after beating earnings seems counterintuitive to me. We'll see?
Yeah, had my finger on Netflix but bought SILJ instead. Could be a great entry, but things can get way more oversold than you think on bad news. That said, wouldn't be surprised to see a big bounce on Monday. I would sell into strength.
 

madhu

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I might regret it, but I bought more Netflix and Intel at 3:00 yesterday. A 23% drop in Netflix after beating earnings seems counterintuitive to me. We'll see?
Be very careful when institutions are selling and in huge volumes, the stocks go down, your best bet is to short the stock in the gaps, don’t catch a falling knife. But Steve Najarian brothers seem to think that nflx , this is a good entry point. Don’t know where the market will lead. The market makers in these high volume stocks will determine the price range for the day. You might want to buy it at the lowest possible price to see if you can catch a lower bid. Also do you hedge with some put buying activity to insure your investment?
This market is very different from 20 years ago. Also I suspect that all markets are tinkered after the 1987 crash. Also a lot of options expiration was on 3 Friday , And indices are being manipulated artificially. Many head faker rally and no one is able to figure out valuations, P/E seems to have no meaning. Earnings beat has no meaning as most of the stocks are on bubble evaluation and false accounting numbers. You cannot believe anything and have to go with what the markets does. General Motors is in oversold territory, but still every day for the last 10 days it has been going down. Doesn’t make sense.
 

Someone_else

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Many head faker rally and no one is able to figure out valuations, P/E seems to have no meaning.
Quoting for truth. When I was actively investing in stocks, I was a "value investor". P/E was THE factor, whether current or projected future. I sneered at "growth stocks" that had NO decent current or projected P/E. One can profit from playing the greater fool game, but it's not for me.

Earnings beat has no meaning as most of the stocks are on bubble evaluation and false accounting numbers.
I agree about stock prices being on a bubble. It is not surprising that the immense flow of new digital money is chasing anything and everything, no matter what the fundamentals are.
 

Usury

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Problem is twofold: 1) inflation…everything cost more, including stocks. 2) what other viable investment alternative is there? Rates are too low, real estate and bonds are even more inflated.
 

Voodoo

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Tons of small caps are now selling for less than the cash on their books. Suspect lots of desperate synthetic shorting but little proof with a cover-up assisting g-men. So yea, it's one hell of a manipulated game, good luck.