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re: Another nice rally 8/7/24

Posted on 8/7/24 at 6:12 pm to
Posted by slackster
Houston
Member since Mar 2009
91302 posts
Posted on 8/7/24 at 6:12 pm to
quote:

There are dips. Sometimes for as much as a couple of weeks, then the bulls start running again.


2022 was pretty painful. 25% peak to trough pull back was 7th largest in a calendar year in 45 years.

quote:

This particular run (really going back to the COVID recovery) has been amazingly immune from any significant downward emotional pressure.


That’s kind of the norm though. In the last 45 years there was really only full blown capitulation in maybe 3-5 years - 87 (which ended up by the way), 02/03, 08/09, and Covid.
This post was edited on 8/7/24 at 6:14 pm
Posted by Art Blakey
Member since Aug 2023
287 posts
Posted on 8/7/24 at 10:00 pm to
quote:

How many headlines about an "emergency Fed meeting" tomorrow?


130 on the MOVE index will get them sweating, at 150 they are acting. The Fed put is triggered by the bond market, not equities. You could make an argument that the Treasury put supports equities as they can't afford a big dip in cap gains. Shifting issuance to the front of the curve (like an emerging market) extended this hiking cycle.
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