Bailout: Buy the rumour, sell the news

[nitro]

Quote from JamesVU2000:

the dollar is rallying because credit is contracting globally. buy the dollar overweight the spx, sell rest of the world

Imo that is a grave mistake. ECB is holding rates steady, and the action in the bonds tell you that the FED may be forced to lower.

My estimate is that the rest of the world (or our own institutions) think they are getting a bargain in the US with the bailout, so they are repatriating dollars. The BRICs are broken, but they are jumping from the fire into the frying pan.

nitro

 

[The Kin]

Quote from nitro:

Imo that is a grave mistake. ECB is holding rates steady, and the action in the bonds tell you that the FED may be forced to lower.

nitro

The Effective Fed Funds Rate was already lowered to 1.25% Look at data from the NY Fed.

It's proof that the PPT is running out of bullets, and is trying all sorts of crazy shit.

 

[snowhite]

We are going down Mon, not up. Everyone I talk to 2day agrees with me.

 

[JamesVU2000]

the time to short this thing was 6 weeks ago

 

[wjk]

We had the biggest bank failure in US history Fri, and the Dow finished positive. I believe some of this bailout was priced in. Never the less, I will likely stay on the sidelines (though I will be watching the YM tonight). I think the real move comes after the votes.

 

[drukes1234]

Quote from The Kin:

I have no fucking idea what the market will do Monday. But I do think the potential of buy the rumour, sell the news is there. Time will tell.

"I think we selloff, hard, on Monday.<------ YOU DEFINITELY CHANGE YOUR TUNE QUICKLY.. LOL.. RIDICULOUS... A classic case of buy the rumour (proposed bailout to save Wall Street and prevent a collapse of worldwide financial markets) and the news (bailout passes the house ans is signed into law).

I don't care how many games the PPT attempts to prop up markets. Monday is end game and world wide crash. Forex opens in 3 minutes. Good luck everyone!!" - THE KIN

 

[vikasd]

This is not sell the news day. If anything this bill is anti-shorts.

Dollar will strengthen short term as money chases us assets.

 

[dhpar]

Quote from vikasd:

This is not sell the news day. If anything this bill is anti-shorts.

Dollar will strengthen short term as money chases us assets.

i have the same feeling. us showed "leadership" - whatever it means...

 

[nitro]

Quote from wjk:

We had the biggest bank failure in US history Fri, and the Dow finished positive. I believe some of this bailout was priced in. Never the less, I will likely stay on the sidelines (though I will be watching the YM tonight). I think the real move comes after the votes.

The buying of DOW futures was a flight to quality - a place to hide money. That is obvious since neither NQ nor ES confirmed. Flight to safety in short term TBills are paying zero...

nitro

 

[dhpar]

Quote from nitro:

The buying of DOW futures was a flight to quality - a place to hide money. That is obvious since neither NQ nor ES confirmed. Flight to safety in short term TBills are paying zero...

nitro

i do not agree. there was absolutelly no flight to safety on friday - in fact exactly opposite is true.