FTSE blasts back through 5000

inspector_monkfish

15:12 09Sep09 FTSE pushes through 5000

14:11 GMT - [FTSE THROUGH 5k] The FTSE100 has just traded through the
psychological 5000 area for the first time this year and indeed since Oct
6th 2008, when it was on the slide to reach its eventual nadir some 1500
points lower. The UK blue-chip is about 1% higher on the day, with the
latest acceleration helped by Wall St turning more bullish after a
flattish start.

Generali

inspector_monkfish wrote: »

15:12 09Sep09 FTSE pushes through 5000

14:11 GMT - [FTSE THROUGH 5k] The FTSE100 has just traded through the
psychological 5000 area for the first time this year and indeed since Oct
6th 2008, when it was on the slide to reach its eventual nadir some 1500
points lower. The UK blue-chip is about 1% higher on the day, with the
latest acceleration helped by Wall St turning more bullish after a
flattish start.

What do you put this down to? The real economy really doesn't appear to support the current rally IMO.

Is it investors looking for yield as they certainly ain't going to get much in cash or Govt bonds as Governments have decided that instead of taking investors' money they'll just print their own? Or maybe something else.

Cannon_Fodder

Good news for pension funds etc, but is it sustainable - will there now be a period of profit-taking?

If enough people decide there is a risk of a dip back, so sell some stock to get back in later when its lower, they will create their own dip...

Isn't October usually the "poor relation" in the stock market year - lets see where that takes us...

inspector_monkfish

Generali wrote: »

What do you put this down to? The real economy really doesn't appear to support the current rally IMO.

Is it investors looking for yield as they certainly ain't going to get much in cash or Govt bonds as Governments have decided that instead of taking investors' money they'll just print their own? Or maybe something else.

BOREDOM !!

traders prob saw 5000 as a target for a bit of fun.... now its there, it will probably crash off big time.

as u say, no reason for it to hang around here...

who knows what those crazy trader guys are upto though

chucky

Cannon_Fodder wrote: »

Good news for pension funds etc, but is it sustainable - will there now be a period of profit-taking?

If enough people decide there is a risk of a dip back, so sell some stock to get back in later when its lower, they will create their own dip...

Isn't October usually the "poor relation" in the stock market year - lets see where that takes us...

this man usually calls it pretty well

sabretoothtigger wrote: »

This situation reminds me of the late ninities. It must pull back soon was the mantra for about three or four years before it finally happened but there was alot of money in that market regardless of the doubters. Obviously I regret not investing in 96 whatever people were saying at the time, they were wrong for years

Im inclined to go with the greenspan theory that money was made cheap and this was the effect it caused and thats exactly true again now.
The elliot wave guys say because of this cheap money all assets move together when this happens and its been going on for years now, it might be wrong but what you or I think doesnt even matter

I agree with you but its just way too familiar for me to say yea its going to topple over. Just keep cycling the money I guess


If spy stays above 102.58 it might be a good time to be in the index till close. It often pauses or pivots around this time



Buy barclays they are cheap !!!!!! - http://www.independent.co.uk/news/business/sharewatch/investment-column-barclays-is-risky-but-could-be-very-cheap-1783479.html

http://forums.moneysavingexpert.com/showpost.html?p=24932215&postcount=855

System

inspector_monkfish wrote: »

BOREDOM !!

traders prob saw 5000 as a target for a bit of fun.... now its there, it will probably crash off big time.

as u say, no reason for it to hang around here...

who knows what those crazy trader guys are upto though

Can't say as I agree with this at all. The FTSE has been climbing at a steady rate since mid July and today it hasn't increased any more than any other run of the mill day, unless the traders have been bored for 2 months?

Edit: Unlucky Dan, you predicted Thursday, I'm going to call you Dan1234 now

inspector_monkfish

Joeskeppi wrote: »

unless the traders have been bored for 2 months?

every chance !!

System

So what's the next big milestone to look forward to? DOW over 10k?

bendix

I agree with Joeskeppi.

People talk about this rally as being unsustainable, but when they quote figures they always quote from March. March was almost an 'armageddon' position, a slump so severe that it was genuinely once in a lifetime. It was an aberration and I would say that of the 50% rally since then, 40 clicks of that could be down to realigning with normality.

There are plenty of reasons why this is more than a paper thin rally. For whatever reason, confidence is returning to the corporate sector. The worst of the recession is over. Companies are reporting better than expected figures. There is a sharp increase in M&A activity recently and - despite the recession - 92% of the workforce remain employed, economically active and buying things.

More importantly, money has to go somewhere. Billions and billions of pounds of liquidity cannot just sit nowhere. Interest rates look awful, so noone wants to keep money in cash for longer than they have to now we know the world isn't coming to an end. Property? Well, perhaps, but the recession-trailing unemployment story will be seen to have an impact there. That leaves stocks and shares.

inspector_monkfish

Joeskeppi wrote: »

So what's the next big milestone to look forward to? DOW over 10k?

guess so.. its less than 500pts away

purch

FTSE blasts back through 5000

They've certainly changed market terminology recently !!!