Thursday, August 19, 2010

Stocks Rally And US Equity Investors Rallied To Get Out Of the Equity Markets

Apparently, according to CNN website, Stocks rally for second day in a row

  • U.S. stocks posted their second consecutive day of gains Wednesday, turning the market around after a week's worth of losses.

The numbers?

  • Dow 10,416 +10 +0.09%
    Nasdaq 2,216 +6 +0.28%
    S&P 500 1,094 +2 +0.15%
Dow up 0.09% and the S&P up 0.15%?

LOL! Who are they trrrrrrrrrrrrrrrrying to kid?

And this is a rally?



Heres the Marketwatch version: Street digs out of hole

  • U.S. stocks trimmed their gains but still closed higher Wednesday as retailer Target Corp. signaled that it could meet Wall Street's profit expectations through the end of the year.
    "Good things tend to happen with cheap stocks, and there are a lot of stocks that are so cheap," said Jeffrey Saut, chief investment strategist at Raymond James.

Stocks are so cheap? If that's the case, why is the Main Street Telling Wall Street That The Equity Markets Stinks!?

CNBC version: Stocks Lose Steam but End Up; Energy Slips

  • We’re coming off of an oversold condition that we had last week,” said Marc Pado, U.S. market strategist at Cantor Fitzgerald. “Last week, the biggest negative was deflationary fears, so right now, we’re unwinding from some of that negative sentiment.”

Fears and sentiments?


Seriously... let's consider those negative fears and sentiments.

What if......

Yes.... what it these so called fears or sentiments were based on justifiable reasoning based on actual facts?

Not possible?

Ah back to the posting Main Street Telling Wall Street That The Equity Markets Stinks!?

It's Thursday and it's time to check out what the Americans are doing with their long term equity funds. ( my quess was more outflow and my guess for next week is more outflow too! :P)

Another 2 Billion was withdrawn by Americans from the equity funds!

No wonder the investment funds are facing layoffs! First it was Barclays Layoffs: The First of Many Axes to Fall?, then Credit Suisse Follows Barclays in Layoffs. Money withdrawn = less customers and sooner rather than later, when there money dries up... how do you expect the market will perform?

Yeah.. tell me if Main Street isn't telling Wall Street that the equity markets stinks! And yeah.. US Stocks rallied for the 2nd day in a row? I guess Main Street ain't that gullible!

ps: the update is for the period ending the 2nd week of August.

Some so-called American financial experts was caught saying it's summer and the traders are on holidays!

I kid you not!

Here's the market wrap for 13 Aug 2010, last Friday. Stocks end lower for 4th straight day
  • "It's low-volume season, also known as August," said Kim Caughey, senior equity analyst at Fort Pitt Capital Group. "Traders are on vacation, and we get some pretty crazy reactions -- or lack of reactions -- because of that."

I err-ed. It wasn't just a financial expert, it was a senior equity analyst!


Traders on vacation? What about them equity fund investors who had been pulling money out of the equity market since 28th April 2010???

Yes since 28th April 2010, Americans have been pulling money out each week from the equity market funds!

Go figure!

Time to update the small table of mine.

Yes... for the 15th consecutive week... Americans have pulled money out from their equity funds and the amount is getting not too small! :P

How small? Just some 50 Billion.