Market rally tomorrow?

[DNoonan]

I wonder if some people dont want to hold overnight right now and are selling towards the end of the day of late causing the declines at the end of recent sessions?

I have a pretty high risk tolerance and want to invest long term so i am going to continue buying in small on these dips but leaving a decent amount in reserve....did quite well in the last downturn by having some $ on the sidelines ready to go to work. I am about 65% equities and 35% cash/equivalents right now

so much for the selling into the close....fed statements helped lead market to a strong finish today....nice!

"The Dow closed up 619.07 points, or nearly 4%, to 16,285.51. It was the Dow's best daily point gain in seven years, and its biggest advance since the volatile days in October 2008 during the early stages of the financial crisis.......Adding to the positlve sentiment were comments from NY Federal Reserve president William Dudley who said the case for the Fed raising interest rates at its September meeeting is "less compelling" because of the recent developments in international markets, including China."

http://www.usatoday.com/story/money/markets/2015/08/26/stocks-wednesday/32393071/

 

[PatsFan1283]

so much for the selling into the close....fed statements helped lead market to a strong finish today....nice!

"The Dow closed up 619.07 points, or nearly 4%, to 16,285.51. It was the Dow's best daily point gain in seven years, and its biggest advance since the volatile days in October 2008 during the early stages of the financial crisis.......Adding to the positlve sentiment were comments from NY Federal Reserve president William Dudley who said the case for the Fed raising interest rates at its September meeeting is "less compelling" because of the recent developments in international markets, including China."

http://www.usatoday.com/story/money/markets/2015/08/26/stocks-wednesday/32393071/

Shocker.....

Do you think another flash crash in ETFs could happen if overseas news turns bearish between close and open? Not tomorrow, in general...Everyone I've talked to seems to think this won't happen again as they will shore up the circuit breakers.

 

[DNoonan]

Shocker.....

Do you think another flash crash in ETFs could happen if overseas news turns bearish between close and open? Not tomorrow, in general...Everyone I've talked to seems to think this won't happen again as they will shore up the circuit breakers.

that's what i've heard as well. i guess the couple days that were a bloodbath would have been exponentially worse without them (circuit breakers). they halted trading over 1,200 times on Monday. Some of the superspeed traders and momentum players that thrive on this volatility with extreme swings are likely making a fortune in this environment.

 

[PatsFan1283]

that's what i've heard as well. i guess the couple days that were a bloodbath would have been exponentially worse without them (circuit breakers). they halted trading over 1,200 times on Monday. Some of the superspeed traders and momentum players that thrive on this volatility with extreme swings are likely making a fortune in this environment.

I think they can stop individual equities from flash crashing pretty easily. Also, when those do flash crash it is tough to know if that is what it is or if it is an actual plummet (since the window to figure this out is so small)

As far as ETFs though, if it falls 20% and the market is down 5% then you instinctively know that it is trading way below NAV and can just buy right away. A lot of these ETFs get sold all at once during a downturn like that in a way mutual funds don't since they only get redeemed at end of trading. Since ETFs exploded in the last few years it's just an entirely new dynamic. It's like your getting mass exodus of mutual funds all at once.

It is interesting, I could definitely see it happening again but most people seem to say "fat chance, that was a once in a 5 year opportunity"

 

[guitarjosh]

What's pissing me off, is if I do 2 more round-trips this month (buy/sell w/in 24 hours) Ameritrade is going to classify me as a day-trader, and require 25K more cash in my account. Ugh.

Unless the rules of changed, I'm pretty sure you're allowed three round trips per week, and that only applies to a margin account. If you're trading in a cash account, you're allowed an unlimited amount of roundtrips

 

[PatsFan1283]

Unless the rules of changed, I'm pretty sure you're allowed three round trips per week, and that only applies to a margin account. If you're trading in a cash account, you're allowed an unlimited amount of roundtrips

It is different for Self-Directed Brokerage accounts, which I am pretty sure is what he is referring to.

 

[guitarjosh]

It is different for Self-Directed Brokerage accounts, which I am pretty sure is what he is referring to.

TD Ameritrade doesn't have any problems with me day trading in my cash account with less than 25k.

 

[festeringZit]

Unless the rules of changed, I'm pretty sure you're allowed three round trips per week, and that only applies to a margin account. If you're trading in a cash account, you're allowed an unlimited amount of roundtrips

Correct. I'm trading on margin.

 

[TheComputerGroup]

The market has come back strong past 2 days......I wonder how long this rise will last? Or will we see up & down constantly for months?

 

[PatsFan1283]

The market has come back strong past 2 days......I wonder how long this rise will last? Or will we see up & down constantly for months?

A lot of that depends on guidance from central banks all around the world. Tough to predict.

 

[jett]

My area is rocking as well. Though north Austin is the top growing area in the country the last few years. I have a rental house that I'm tempted to dump, just because the
property values have gone so high.

I think that may be a good idea, the rapid appreciation worries me; another bubble is always possible. I am hoping that the bankers have long memories and never forget what almost brought us all down.

But hey, don't listen to me, I am still kicking myself for not buying Bank of America (BAC) when it hit $3 in early 2009

 

[shane-o-mac]

With the size of the bear breakout this week, would be a good idea to buy some puts in the 204 area on the SPY if it gets up there. Should test down once (if) it gets there.