Anybody Buying Yet? Where’s the Bottom?

[BigHornRam]

Who's dumb idea was this?

Janet Yellen shoots down the idea of a Fed-backed $1 trillion Treasury platinum coin to keep the US from a debt default

Treasury Secretary Janet Yellen ruled out the possibility the Federal Reserve would back a $1 trillion platinum coin to fend off the US from a debt default.

markets.businessinsider.com

 

[SAJ-99]

Who's dumb idea was this?

Janet Yellen shoots down the idea of a Fed-backed $1 trillion Treasury platinum coin to keep the US from a debt default

Treasury Secretary Janet Yellen ruled out the possibility the Federal Reserve would back a $1 trillion platinum coin to fend off the US from a debt default.

markets.businessinsider.com

The debt ceiling has been around for 100yrs or so, I think for funding WWI. I agree, it’s stupid.

 

[huntandfly]

Ahh nothing like a little no sense rally crushing my short position to remind me that I really know nothing

 

[BigHornRam]

This is a real confidence booster.......

NYSE Gets Wave of Sell Orders, Unleashing Stock-Market Chaos

(Bloomberg) -- Dozens of large-cap stocks saw their prices swing wildly at the open of trading Tuesday, sending companies including Wells Fargo & Co. and Morgan Stanley to brief but sharp plunges from which they mostly quickly recovered.Most Read from BloombergUS Confronts China Over Companies’...

finance.yahoo.com

 

[Sytes]

General Dynamics earnings topped expectations due, in part, to defense contracts increase.

Biden has agreed to provide M1 Abrams to Ukraine, following Germany, UK, and Poland's intent to provide tanks as well.

M1 is a GD product. Keeping this about stock and the Ukraine/Russia thread about the war, figured this enough info for our interest in this thread.

91 billion backlog sits with GD contracts.

Stock Picks, Stock Market Investing

seekingalpha.com

 

[AlaskaHunter]

The debt ceiling has been around for 100yrs or so, I think for funding WWI. I agree, it’s stupid.

But the threat of a Congressional stalemate is likely to negatively impact the markets.
Remember what happened in 2011?

 

[BigHornRam]

But the threat of a Congressional stalemate is likely to negatively impact the markets.
Remember what happened in 2011?

2018 the market went up.

The 2018 Shutdown
The latest shutdown began at midnight on Dec. 22, 2018, and ran for 35 days, until Jan. 25, 2019. This was was the longest in U.S. history. The S&P 500 Index rose by 10.2% during this period. The previous longest shutdown was 21 days, ending Jan. 6, 1996, during which time the S&P 500 posted a slim 0.1% gain, as calculated by LPL.

 

[SAJ-99]

But the threat of a Congressional stalemate is likely to negatively impact the markets.
Remember what happened in 2011?

I remember. The question is do they. The market has stopped putting much emphasis on it. A congressional stalemate is typically good because it means less changes, ie. relative stability, which is always good in running a corporation.
Politically, Dems are going to see how unified the Repubs are. There isn't much to debate regard a debt ceiling increase, it has to be done. The Repubs are going to try to chop away at spending, which might not be bad at face value, but they never chop away at the things that matter. If there was a clean bill to increase the debt ceiling, it will be interesting to see if it is brought to the House floor for a vote. I think because McCarthy knows it would pass. Hard for anyone to come out of this looking good to anyone but their most hardcore base.

 

[AlaskaHunter]

2018 the market went up.

The 2018 Shutdown
The latest shutdown began at midnight on Dec. 22, 2018, and ran for 35 days, until Jan. 25, 2019. This was was the longest in U.S. history. The S&P 500 Index rose by 10.2% during this period. The previous longest shutdown was 21 days, ending Jan. 6, 1996, during which time the S&P 500 posted a slim 0.1% gain, as calculated by LPL.

Shutdown is different than the debt limit.

From April to August 2011, at the height of a similar debt limit struggle, the S&P 500 tanked 31 percent.

In 2011, the market downturn started about a month before the deadline and accelerated as the deadline approached. Market volatility spiked as the deadline drew closer. We are still five months away from the crisis point, so market reaction is expected to remain muted in the coming weeks.

In the bond market, Treasury bills with maturities in mid to late summer are starting to see a premium in their yields that may reflect anxiety about the timing of a debt ceiling resolution. In previous debt ceiling episodes, short-term Treasury bills and risk assets declined as the drama unfolded, then rebounded once an agreement was reached.

Politically we are in even tougher times than 2011 in terms of a potential agreement worked out between the House and Senate.

 

[BigHornRam]

Mostly just political theater stirred up by the media.

This will have a much greater negative impact short term on the markets. If inflation continues it will have long term negative impacts.

Google, Meta, Amazon and other tech companies have laid off more than 104,000 employees in the last year

The tech industry has seen a string of layoffs in the face of uncertain economic conditions.

www.cnbc.com

"Layoffs come as digital advertisers are cutting back on spending and rising inflation curbs consumer spending."

 

[SAJ-99]

From April to August 2011, at the height of a similar debt limit struggle, the S&P 500 tanked 31 percent.

Don’t forget the rating downgrade of US debt.

Q4 GDP solid, weekly new unemployment claims fell again, earnings have held up ok so far, and TSLA selling cars to spite BHR. Still not seeing anything pointing to a recession anywhere but housing. Price action is encouraging but stocks getting more expensive.

 

[BigHornRam]

Don’t forget the rating downgrade of US debt.

Q4 GDP solid, weekly new unemployment claims fell again, earnings have held up ok so far, and TSLA selling cars to spite BHR. Still not seeing anything pointing to a recession anywhere but housing. Price action is encouraging but stocks getting more expensive.

Still not touching TSLA with a 10 foot pole, no matter how much you try to bait me.

 

[SAJ-99]

Still not touching TSLA with a 10 foot pole, no matter how much you try to bait me.

I'm certainly not trying to talk you into it. I may have nudged around $110, but not here. Looks like short covering. Tech setup is good though as 50dma goes through 200dma and it busted through the top of the channel on downtrend. Too much Elon for my taste.

 

[noharleyyet]

I'm certainly not trying to talk you into it. I may have nudged around $110, but not here. Looks like short covering. Tech setup is good though as 50dma goes through 200dma and it busted through the top of the channel on downtrend. Too much Elon for my taste.

If only my FA was as emotional...he doodles upside down figures while he drones memorized market spiel, do they teach that?

 

[SAJ-99]

If only my FA was as emotional...he doodles upside down figures while he drones memorized market spiel, do they teach that?

Taught, learned, who knows. They teach them to say whatever keeps the money in the account so the fees can be charged every month.Does your FA drool a lot? That should be the deciding factor.

 

[noharleyyet]

Taught, learned, who knows. They teach them to say whatever keeps the money in the account so the fees can be charged every month.Does your FA drool a lot? That should be the deciding factor.

Pretty sure my account is not at the drool level...

 

[SAJ-99]

Pretty sure my account is not at the drool level...

Well, then you should be lucky he gave you a meeting. At least he has demonstrated he can do two things at once, and doodling upside down ain't easy.

 

[SAJ-99]

Is the answer to this simply your news sources?

 

[jryoung]

Filled at $7.8. If it doesn't work out I'm cancelling my subscription to your newsletter.

Jumped in at $7 first thing this morning.

 

[BigHornRam]

Jumped in at $7 first thing this morning.

It still continues to creep down. I may have to liquidate some of the oil patch and load up, if it dips into the $6 range.