I closed my long into the close. I made a shitload of money today. I couldn't believe how quickly it happened. My target was a yield of 3.5%. It's around 3.56% It could keep going though, who knows how far the fed has to take it. Maybe 3%.
Take it 30 min before you go to bed, it makes you fall asleep more easily and gives vivid dreams. If you take it during the day, it makes you drowsy, and foggy.
Like they always say, don't fight the fed. This was a massive rally in the 30. I believe there's further to go. The fed has got to get the rate low enough to stop banks from hoarding.
Saudi Arabia has not cut anything to important customers like the US. Second, emerging markets are just now going into a recession. The US has been slowing for at least a year. So, the demand picture should fall off a cliff in the next 6 months. Plus, Saudi Aramco will make sure the US has cheap...
Crash imminent? We have already seen the crash in October. Now, if anything, we will just see slow bleeding until the fed can re-flate the economy, which will end de-leveraging.
I could see the 30 year yield at 3.5%. Today's action proves that the fed is in there buying. Not that I doubted it, but for the naysayers out there. You need to do your homework and keep up with fed policy if you want to make money in this market.
I would like to start a discussion on the federal reserve's recent change from interest rate targeting to quantitative easing.
A couple links for people who need to get up to speed:
PDF on open market operations in Japan
Article explaining recent fed actions
The fed will be monetizing the debt, instead of sterilization. The whole point of this process is to in fact, bring back some inflation. This is a deflation fighting policy.
The federal reserve is now utilizing the same strategy Japan did starting in 2001. Quantitative easing. Part of that strategy is to go directly into the treasury market to drive down the interest rate. This has the effect of making treasuries less desirable and other more risky investments the...
It's due to the higher market volatility mixed with many small trader blow ups. Once volatility drops, sometime next summer, we should see margin requirements go back down.
WTF? You think paper trading is anywhere near the same thing as real time trading with real money on the line? This thread is just irritating. You outperformed hedgefunds on your 2 dollar notebook. Give me a break. Who cares. I could paper trade myself into a fortune too. It's too easy to let...
After all the bailouts and 2 trillion to back up the financial markets, the Federal Reserve has still not made mortgage rates fall. It's ridiculous. The Fed needs to turn the bazooka of the printing presses to buy up mortgage backed securities, or just directly loan to consumers.
Every time...
It's not either chairmans' fault alone. It's the federal reserve system that's a fault. They drove rates way down, including mortgage rates and endorsed adjustable rate mortgages. Then they went on a campaign of relentless rate increases. What did they expect. It seems planned to me.
Tape reading is watching different equities' price behavior in relation to eachother, and finding imbalances. An example would be to watch how the leaders in the S&P are trading, while comparing small cap leaders and how they're trading. You can see when real bids are coming into the whole...
Flight to safety. US treasuries are the most liquid, safe instrument in the world. So, government funds are moving out of Eurozone and other country debt into US.