The problem seems to be that most people take criticism of the systems at play personally. My opinion of the American financial system is a "hate the game, not the player" type of thing. I do not like how easy it is for bad actors to take advantage of and even create tools to suck wealth from ordinary people. With generally very little meaningful oversight. There isnt much there to stop said bad actors and generally when they are caught they get a monetary slap on the wrist that is peanuts in comparison to the spoils of their malpractice.
In simple terms I believe a lot of the finance sector looks entirely past actual, legitimate investment in favor of generating wealth, at any cost.
This will be my only comment in this thread on this because it is more political than financial. Simply put, I agree with you on most points. As I mentioned in another thread, corruption is corruption, I view it absolute terms not shades. This is why I laugh at the "we have race issues" mantra. We have wealth issues, not race issues. I grew up a dirt poor white kid in the south. I am now neither dirt poor nor in the South. White collar criminals get away with shit because they have wealth, not because of skin color. I see the finance game rigged not because it is blatantly broken, but because of the absolute dearth of financial education we promote in our schools. People should not be graduating high school without understanding interest and interest rates, the time value of money, what the financial system is, being able to at least spell the word macroeconomics etc. We keep the poors dumb and financially uneducated for a reason.
Back on topic...
I did some looking into
Blazin
200DMA research. Below is the 1 year chart on the Nasdaq. At Friday's close we sit 23.1% above the 200 DMA. on 10/12 we hit 21.3% above the 200 DMA and then pulled back almost 1000 points (about 10%) over the course of the next couple of weeks. On 9/2 we hit 29.2% above the 200 DMA and then pulled back about 1500 points (about 12.5%) over the next couple of weeks with a sharper initial drop down. Note the 10/12 date was also in the run-up to the election as a mitigating factor.
What does it mean? Well we are currently over-extended as Blazin said. But we ran all the way up to 29% above back in September before we pulled back and corrected. If we make it to that same level before correcting it would push the Nasdaq up to around the 13,000 mark. So what does it say to me? Well, we are in pull-back territory, but its a pretty big territory and greed/interest free money/cash on the sidelines/stimulus bill etc could easily push us up another 500 points on the Nasdaq before we come to a screeching halt. With end of year harvesting/financial managers looking to lock in gains for their bonuses/rebalancing coming I think we might run another week or two max before we take a dive back down to 11,500 or so (maybe back to 10,500 if people get real skittish). Oh, and yeah about that election thing still dragging on...
edit: I also think the farther up we run from here the more violent and steep the correction will be. If we start correcting today I can see it be a generally smooth downward shift. If we keep running up until Christmas Eve then it could be express elevator time.
