DrStool Posted January 10, 2019 Report Share Posted January 10, 2019 9 minutes ago, Jorma said: This sort of thing always confuses me because for every seller there was a buyer. Net there is no new money. If dealers were doing a lot of the buying then functionally I suppose it's new money on the buy side. Sure there's a buyer for every seller. That applies to all businesses. Supply and demand. It does not mean that there are ever the same number of suppliers vs. buyers. It does not mean that sellers don't raise their prices when demand picks up. What about a monopoly. There's one seller and many buyers. But that one seller fulfills all the buyers. And there's a lot more money in the hands of buyers today than in September. Why? Because they sold. You're right, there's no new money. It's just in different hands. And by Christmas it was in the hands of a lot of people who just don't like to hold money. They'd rather hold stock. Money fuels demand. When people have more money against a relatively static, or temporarily reduced supply of goods they pay more and sellers charge more. Prices go up. The post will go into more detail. Link to comment Share on other sites More sharing options...
Jorma Posted January 10, 2019 Report Share Posted January 10, 2019 Everybody knows we are going to close the week above 2600 and 24,000. If I were ruling the market I would have the averages weak into the close tomorrow and then have a giant gap up Monday morning. Link to comment Share on other sites More sharing options...
fxfox Posted January 10, 2019 Report Share Posted January 10, 2019 2 hours ago, Jorma said: What is a good benchmark for Euro short term rates for a chart to look at? Try EURIBOR Link to comment Share on other sites More sharing options...
DrStool Posted January 10, 2019 Report Share Posted January 10, 2019 https://suremoneyinvestor.com/2019/01/while-wall-street-tries-to-get-you-excited-about-a-rate-pause-heres-what-really-matters-part-1/#deeplink Link to comment Share on other sites More sharing options...
Jorma Posted January 10, 2019 Report Share Posted January 10, 2019 36 minutes ago, fxfox said: Try EURIBOR How can rates stay negative without ECB buying? Link to comment Share on other sites More sharing options...
fxfox Posted January 10, 2019 Report Share Posted January 10, 2019 We are entering a big congestion area, should contain upmove for a while. Bears will be in real trouble if 2640 doesn‘t contain the upmove. Link to comment Share on other sites More sharing options...
DrStool Posted January 10, 2019 Report Share Posted January 10, 2019 6 minutes ago, Jorma said: How can rates stay negative without ECB buying? Great question. Although there's very little supply. ECB removed most of it and will continue to replace maturing paper. Very little high quality government paper available. So they bid it to negative. ECB still charges banks for holding their reserves. It's crazy. Link to comment Share on other sites More sharing options...
fxfox Posted January 10, 2019 Report Share Posted January 10, 2019 7 minutes ago, Jorma said: How can rates stay negative without ECB buying? I think Doc can explain that. Here is a good site to check the rates (also read what is written in red there): https://de.euribor-rates.eu/aktuelle-euribor-werte.asp Link to comment Share on other sites More sharing options...
fxfox Posted January 10, 2019 Report Share Posted January 10, 2019 Right now it really feels as if a new QE programme would have started. Simply sick. Link to comment Share on other sites More sharing options...
DrStool Posted January 10, 2019 Report Share Posted January 10, 2019 Feels like an ordinary bear market rally to me. We''ll see. Good night from Nice! Link to comment Share on other sites More sharing options...
aussiebear Posted January 11, 2019 Author Report Share Posted January 11, 2019 ---> Floating Friday Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.