Very Bullish reversal is just happening

Quote from pattern39:

I don't get it. What's so bullish about Fed's announcement today?
More...


dunno... not listening to the FED anymore... hahaha

I am CRAZY!!!!!!!!
 
QE1 & 2 averted a banking disaster. There will be no QE3 because there are no libor issues, no credit default, no PPI deflation, system is well liquified. Fed could care less about the s&p now unless it falls 80%

Quote from S2007S:

QE will not turn anything around, its time for many people to understand that QE only creates a wealth effect and nothing more. QE1 and QE2 did nothing but create inflation and artificially prop up equity markets around the globe.
More...
 
Quote from GrandSupercycle:

SP500/DOW daily and weekly charts are bearish so the rally that
started late Tuesday is counter trend and thus temporary.
More...

This. Not saying the carnage will continue tomorrow, but that ridiculous surge after that ridiculously tame announcement (why would anyone think think they were going to start jacking up rates, even in the medium term?) isn't a indicator of anything except that some very rich people are executing some very clever (or possibly very stupid) SHORT TERM scheme. Everything before 3pm was perfectly reasonable, expected correction and counter-correction.

This isn't 2008. There's no super scandal, no circling-the-drain companies (BoA doesn't count) driving this one. The issues are fundamental and very real, but this urgency is (very much like the tea party's recent obsessions) contrived. The negative correlation of gold with other commodities is all you really need to see to realize the whole thing is hopelessly distorted. I think the underlying real trend is bearish, but no one can see through this noise.

This is the greatest psychological market manipulation ever attempted.
 
Quote from pattern39:

I don't get it. What's so bullish about Fed's announcement today?
More...

There could be several reasons why the announcement was bullish for stocks, to name just a few:

1. Declining yields on the 10-year treasury after the fed announced they would keep interest rates next to zero until mid-2013, and no indication of more "QE" nonsense (thus far).

2. The fed announcement was met by the usual violent whipsaw action until the S&P found support around 1,100 (the November 2010 low). Longs started buying in droves, and/or shorts covered.

Whether or not the "very bullish reversal" is the true bottom is anyone's guess.
 
There aren't many places to invest people.

There's gold, stocks and commodities.

Everything else sucks these days.

What used to be the Holy Grail, Real Estate, it's now the kiss of death.

FoN
 
Quote from ScalperJoe:

There could be several reasons why the announcement was bullish for stocks, to name just a few:

1. Declining yields on the 10-year treasury after the fed announced they would keep interest rates next to zero until mid-2013, and no indication of more "QE" nonsense (thus far).

2. The fed announcement was met by the usual violent whipsaw action until the S&P found support around 1,100 (the November 2010 low). Longs started buying in droves, and/or shorts covered.

Whether or not the "very bullish reversal" is the true bottom is anyone's guess.
More...

This is your answer as to why the Fed announcement could be bullish?

Number 1 above is opposite reality. More QE would have been bullish for stocks, not less. Number 2 is a technical reason, not because of the Fed.

The reason why, other than a technical bounce (remember we had like 8 days of down, have to bounce somewhere) is that, by guaranteeing low rates for so long, the Fed is trying to push everyone out of cash and into something that offers return. Equities, etc. Holding cash gets you zip (even less so when taken with inflation).
 
You must log in or register to reply here.
Back
Top