Stock market

Discussion in 'Off-topic Political' started by bdee, Dec 9, 2010.

  1. bdee

    bdee انا باتمان

    I don't know a lot about the stock market, but I was looking and it looks like it has flat lined. Is that bad?

    http://finance.yahoo.com/echarts?s=^DJI+Interactive#chart2:symbol=^dji;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
     
  2. mygunstoo

    mygunstoo Active Member

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    There is some speculations that if the Bush Tax Cuts were not extended past this end of the year, capital gain taxes will go up a lot. Because of that, investors are "thinking" about getting the $$$ out this year and pay lower taxes in capital gain than doing it over the next year.

    If my memory is correct, I think that is what I read.
     

  3. bdee

    bdee انا باتمان

    That would mean the stock market would be going down though right? But it's not, instead it's not doing anything at all. Maybe its just because investors aren't making any moves at all until the tax issue is settled.
     
  4. mygunstoo

    mygunstoo Active Member

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    Yes. But according to some experts, the investors have until Dec. 15 to decide whether to pull $$$ out or let it ride into next year. If the investors decide to pull it out, according to the expert, it could crash the stock market. I think I read that few days ago in Drudge Report.
     
  5. AEKDB

    AEKDB New Member

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    If you look at the S&P and the Nasdaq you do not see as much of a "flat line". Since it is only composed of 30 stocks the DOW can have strange short term results.
     
  6. Mr_Z

    Mr_Z Member

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    Yeah, a flatline usually represents a "hold" mentality, but as was mentioned, the dow is not a broad index, so it is not representative. Look at a entire market index (or several more focused ones) for a better clue