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10 year treasuries reach all time low

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  • 10 year treasuries reach all time low

    So the yield for 10 year treasuries went below .9% today. Let’s think about that...investors are so bearish that they are willing to buy a 10 year treasury bond that is paying them less than 9 tenths of 1 percent per YEAR.

    That might be good news for borrowers, but I think it is an incredibly bearish signal overall for the near term.

  • #2
    I'm really worried about the whole negative interest rate thing. It's going on now in parts of Europe, I figure it's only a matter of time before it rears its ugly head here. And of course, my luck, it'll hit when we are set to retire.

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    • #3
      Originally posted by TexasHusker View Post
      So the yield for 10 year treasuries went below .9% today. Let’s think about that...investors are so bearish that they are willing to buy a 10 year treasury bond that is paying them less than 9 tenths of 1 percent per YEAR.

      That might be good news for borrowers, but I think it is an incredibly bearish signal overall for the near term.
      Yeah, short term minded people loves to have stupid exuberance and stupid amount of fear. These are the folks who are the epitome of FOMO. It's hilarious to see investors are just a bunch of teenage trend followers.

      Good time to buy sectors that hit the hardest. Cruise stocks look good about now, also will buy more DIS as it dips. Airplane stocks should also be on your radar. Cruise stocks has never been this low for the past 5 years. This virus will most likely be old news by April given the amount of new cases are not something all that surprising.
      Last edited by Singuy; 03-05-2020, 04:59 PM.

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      • #4
        I was thinking the same thing, Singuy. Airlines and cruise lines. I rarely buy individual stocks but might make an exception here.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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        • #5
          Originally posted by Singuy View Post

          Yeah, short term minded people loves to have stupid exuberance and stupid amount of fear. These are the folks who are the epitome of FOMO. It's hilarious to see investors are just a bunch of teenage trend followers.

          Good time to buy sectors that hit the hardest. Cruise stocks look good about now, also will buy more DIS as it dips. Airplane stocks should also be on your radar. Cruise stocks has never been this low for the past 5 years. This virus will most likely be old news by April given the amount of new cases are not something all that surprising.
          You still bullish on Tesla? I’m considering doing some buying, but I won’t until there is panic selling. I think it’s coming.

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          • #6
            As others have said, the temptation to load up on certain sectors is growing. United is down over 20%.
            Brian

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            • #7
              I don’t see any panic selling yet. If I buy anything, it won’t be until that event. But it could happen in the final couple of hours of trading today, who knows.

              Still way too much calm in this downdraft for me to be interested.

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              • #8
                Originally posted by TexasHusker View Post
                I don’t see any panic selling yet.
                How does one define or identify "panic selling"? And I'm not being snarky. That's a serious question.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

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                • #9
                  Originally posted by disneysteve View Post

                  How does one define or identify "panic selling"? And I'm not being snarky. That's a serious question.
                  Panic selling is when sell orders far outnumber buy orders and the spread between bid and ask is very large. Instead of putting in limit or stop limit orders, sellers just say “sell at market, just get me out”, and the stock price falls precipitously.

                  It is basically a parabolic bull market in reverse. Look at the chart on say Tesla over the last year - it’s straight up and sharply so. Buyers are buying into momentum. In a panic sell-off, sellers are committed to get out no matter what.

                  Right now there is still a lot of calm in the markets. But if support at these levels breaks down and the DJIA dives to say below 20K, you’ve got people waking up and saying “my gosh we could lose all of our retirement—— get out TODAY!!!”

                  That is the buying opportunity of a generation. But it could take years for the markets to get back to their all time highs.

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                  • #10
                    I might add, this is probably a decent entry point. Me personally though, I’m not interested until things get really nasty - the potential returns right now are no better than what I can already get through other investments.

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                    • #11
                      This last hour of trading could bring market capitulation and a several thousand point drop. Going to be interesting.

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                      • #12
                        Originally posted by TexasHusker View Post

                        You still bullish on Tesla? I’m considering doing some buying, but I won’t until there is panic selling. I think it’s coming.
                        Tesla is a multi year investment for me so I am bullish toward the long term goal price targets that are substantially higher than today's.

                        There's a fundamental change at Tesla in which S&P inclusion is on the table, hence the parabolic move up. It's also why the stock is not going down as if it's some kind of bubble. If you study the company, then you'll realize Tesla has finally learned from all past mistakes and are finally executing.

                        Also be wary of market markers who set the option markets. They have a much bigger say for a company like Tesla's stock price than anything that is happening at the market. Max pain trading has been a thing for the past few months ever since the rise of TSLA. They don't want to pay out all those option returns, so they are dictating the price on Friday's close. Today will be 700, and they will manipulate it to 700 however they can.

                        Remember how Tesla dropped big time from 940s? That was market makers trying to take control of the narrative as Max pain had to be in the 700s by the end of that week or else hundreds of millions will be paid out to call holders. So a bomb was dropped which caused "panic selling'...aka stop loss selling and then they manipulated to exactly 750 by Friday.

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                        • #13
                          looks like buyers are supporting the market where it is at for today - lots of inflow in the last 15 minutes.

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                          • #14
                            Originally posted by TexasHusker View Post
                            looks like buyers are supporting the market where it is at for today - lots of inflow in the last 15 minutes.
                            Nah, money makers trying to push the price to a point where they pay out less money to put holders.

                            As you can see, Tsla ended the day at 700. We called it beginning of trading today. Seriously, the stock market is not for those who are in it for the short term. The manipulators will play you like a fiddle. Just buy and hold, it's the only way to overcome manipulators.

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