Pump n' Dump

[Bearman202]

Any body else watching the stock market? The same week we get a sharp increase in the number of unemployed, we see the market climb 200 points in one day. That doesn't track. Also, the Fed is dumping another 600 BILLION of their play money into the mix. There is no way that's not going to result in inflation, unless the banks soak it up again, in which case it could lead to DEflation, in which case we're all screwed. What I'm seeing is a pretty classic pump'n'dump on the market. The big guys buy a lot of stock, driving the price up. Then, when it hits a magic number, they sell it all for a profit. The little guys who aren't on the inside get hosed, because they buy in while the market is going up without knowing what the magic number is to bail.

Anybody else got a different reading on the situation?

[Buster]

I think that the primary driver is QEII which to me is a backdoor tax that will hurt the middle class the most
we are in a lose lose situation -- those in power will likely take the route that hurts them the least and to ^%$^ with the rest of us

[Matt In Oklahoma]

Same ole same
gonna be be a rough first quarter in 2011 after play time in last quarter 2010

[Lowdown3]

It might be a good time to start slimming down your stock/MF holdings a bit as a lot of funds are getting very close to "highs" from a few years ago.

I buy a few mutuals through my Roth a couple times a year. Back in mid summer I had DOW 9,500 as my target to buy in again. For the last couple years I've tracked, bought and sold 3-4 different funds over and over again. Usually buying close to market lows and then riding the funds up till I get a 5% or so gain. One of the Best ones was 14% gain inside of a month one time. Anyways, I sell them then and keep the proceeds in a money market inside the Roth.

Market got to about 9,800 in July. I tried to hold to my target of 9,500 I should have bought in a little bit at 9,800 a couple of funds have grown 20% since then.

No, this isn't my "survival" plan. This is my "TS never did HTF" plan. We really need to plan for both.

[610Alpha]

Excellent point Lowdown3 +1,000 points.

[monkeybird]

I almost always check out the stock market and the price of gold. Sometime several times a day I click on Fox Business just to check on the economy. The market is definitely UP!! I got completely out of the market last year and in retrospect, don't regret the decision. It is too unstable for older people to gamble there money in. I'm thinking of the old 70's song "What goes Up, Must come down" any of you remember it's real title. The economic numbers simply do not match the raise in stock prices.

The big issue is the interest that institutions and people can get for their money. 1% doesn't cut it for state retirement funds, retirees, and mutual funds. They have started buying stock heavily in an attempt to create enough money to cover their payouts. I have no desire to buy stocks and haven't for a very long time. Gold is so high - I'm uncertain if it will continue to rise. It doesn't matter, because I won't sell it. It's for a time of dire disaster!

I wonder about the volatility of the market. You really need to be an expert and have the money to loose before you invest heavily. So, you investors, be careful!

[Patriotic Sheepdog]

The market is not what it used to be. I remember in school we students researched companies and bought with fake money some of their stock. We had to keep track of the company and buy and sell its stock based on the company's profit/loss and how it was performing. Unfortuntley, today there are super-computers that run extensive algorithms that will buy and sell several hundred/thousands of shares in milliseconds. The average guy cannot compete with these computers. The markets are manipulated by large corporations as well as the Fed. Something is wrong when one man can make a statement during an interview or at a press conference and the entire market moves.