Fed will start tapering QE in September

sprstpd · May 13, 2013

I guarantee the Fed won't start tapering in Sept. How many times have their been rumors of QE tapering and it didn't happen? Fool me once... Besides, it's not in the Fed's DNA.

QuantWizard · May 13, 2013

Quote from actionzip54:

QE isn't another Lehman scale event?

Hell no.

Tsing Tao · May 13, 2013

LOL....QE tapering.

With the choice of the new Fed Chair between Yellen, Lil' Timmay, and Summers? Tapering?

brokerboy · May 13, 2013

you think you can have good economic news, good earnings, and fed pumping money in like its no tomorrow haha the catch is when the fed stops pumping money in the good news and good earnings go away.

what the fed is doing right now is destroying the stock markets. this will crush people in the end. the market does not even know how to digest news anymore so you are seeing computer flipping stock and going home flat holding this market up.

Quote from sprstpd:

I guarantee the Fed won't start tapering in Sept. How many times have their been rumors of QE tapering and it didn't happen? Fool me once... Besides, it's not in the Fed's DNA.

mastacoli71 · May 13, 2013

History repeats itself. Since 1950 the only time mkt had 5+ bull mkt run was in the 80's. If you think the expansion is similar to that time frame, mkt could run another 2 years. If not, the avg bull mkt is 4 years. Good luck whichever direction one chooses.

brokerboy · May 13, 2013

the only problem is the fed they have changed the idea of free markets. you now have to decide is bubble bens exiting or staying with each piece of information. you have people screaming buy buy buy its actually very hard to be short. you have to say to yourself since its so scary to short does that make it a great trade now or is the fed aloud to just continue and run up the stock markets.

Quote from mastacoli71:

History repeats itself. Since 1950 the only time mkt had 5+ bull mkt run was in the 80's. If you think the expansion is similar to that time frame, mkt could run another 2 years. If not, the avg bull mkt is 4 years. Good luck whichever direction one chooses.

mastacoli71 · May 13, 2013

Quote from brokerboy:

the only problem is the fed they have changed the idea of free markets. you now have to decide is bubble bens exiting or staying with each piece of information. you have people screaming buy buy buy its actually very hard to be short. you have to say to yourself since its so scary to short does that make it a great trade now or is the fed aloud to just continue and run up the stock markets.

this is always happens at a top. everyone thinks it will just keep going, no pullbacks. maybe get a blowoff top where main street says i can't stand it anymore, i have to get in. that is when the correction happens.

brokerboy · May 13, 2013

i don't know if its computers flipping stock and dragging this out anymore. i don't mind being wrong it just makes no sense lately. we might need to start a support group for shorts soon similar to a abused women's group haha

Quote from mastacoli71:

this is always happens at a top. everyone thinks it will just keep going, no pullbacks. maybe get a blowoff top where main street says i can't stand it anymore, i have to get in. that is when the correction happens.

denner · May 13, 2013

Quote from sprstpd:

I guarantee the Fed won't start tapering in Sept. How many times have their been rumors of QE tapering and it didn't happen? Fool me once... Besides, it's not in the Fed's DNA.

Completely agree. It's been this same line of horse**** for the past four years. They get "hawkish" in tone to manage perception for a period of time...when things get going a bit too far in the other direction, they change their tune and pile back on with the next iteration of "easing".

In case there are those who aren't paying attention, each iteration requires greater and greater amounts of intervention...at this stage of the game, there ceases to be a "market" without ongoing and full time intervention.

pikachu9 · May 13, 2013

Quote from denner:
each iteration requires greater and greater amounts of intervention.. [/B]

That's because higher and higher valuations require more and more support to counter any natural selling pressure from sellers trying to take advantage of higher prices. CBs rather not let the market find its natural lower level that would entice normal buying activity.