Anyone think massive reversal around 230 ?
- Thread starter wiesman02
- Start date
Quote from pumpanddumper:
Okay, I will do a stocktrader:
Buy, there is no credit crisis.
FED is your friend. Uncle Ben loves you. 50 basis points cut and we are at 14k DOW. No risk. All upside.
America has no problems. Just keep buying...never sell. Dow 15k by year end.
That sounds like Kudlow to me....
hmmmm
.25 is 100% possible, .50 and its alot worse than what most think, a 50 basis point cut to me would signal they are about 99% sure of a recession happening or even being in one at this very moment.
Also do not think for a second that more rate cuts will benefit this market, everyone thought this on Oct 31, everyone knows what happened after that.
Also do not think for a second that more rate cuts will benefit this market, everyone thought this on Oct 31, everyone knows what happened after that.
I'm stunned at how much the market is hooked on the rate cut as the only reason for the upmove. Dismal, and I mean dismal news all day long and nothing is paid attention except the possibility of a rate cut. Like a junkie promised one last hit on the crack pipe at the expense of everything else.
In big bold letters on Yahoo...
Dow Soars 300 Points as Rate Cut Hopes Increase- AP
And then....under that,
Existing Home Sales Fall for Eighth Straight Month- AP Fed:
Economy Loses Speed, Shopping Slows- AP
Bear Stearns Cuts 4 Percent of Staff- AP
In big bold letters on Yahoo...
Dow Soars 300 Points as Rate Cut Hopes Increase- AP
And then....under that,
Existing Home Sales Fall for Eighth Straight Month- AP Fed:
Economy Loses Speed, Shopping Slows- AP
Bear Stearns Cuts 4 Percent of Staff- AP
We are rally to session highs no doubt. Sell the close. Gap down overnight!
This is a great lesson I'm going to try to remember on how markets do not follow logic, rather they try to screw the maximum number of short term retail participants on one side of the trade.
Remember all the bad news? And how everyone was selling and wouldn't buy?
Now today, we get a barrage of more bad news and all it takes is
1) An untraceable speculative rumor that no one will ever follow up on
and
2) Very deep pockets
to turn the screws on all the shorts piling in on sentiment.
the dow is up almost 400 points and there is not a bull in sight! has anyone considered for a moment that staff of the federal reserve, a group of very highly accomplished economists might be more correct than a chatroom full of doubters and flamers? has anyone considered that injecting liquidity and cutting the rates to allow banks and businesses to function and letting the dollar go to narrow the trade deficit might just be a good idea? have we considered that buying 500 excellent companies in fortress america while the dollar is cheap and the stock market is down 10% might be an attractive prospect for foreigners? need i continue?