Edited by redfoliage2, 30 May 2007 - 01:22 PM.
Fed and Rate Cut
Started by
redfoliage2
, May 30 2007 01:19 PM
9 replies to this topic
#1
redfoliage2
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Posted 30 May 2007 - 01:19 PM
Fed said inflation remains a focus with no indication of a rate cut. So, bulls got no help from the Fed on a potential rate cut. Need to find something else to spin.
#2
Mtrader
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Posted 30 May 2007 - 01:30 PM
So that is why we just BUY BUY BUY.
You are on your own. This is for demonstration only.
JV
JV
#3
bullishnot
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Posted 30 May 2007 - 01:34 PM
patience and the drop will come
#4
gorydog
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Posted 30 May 2007 - 01:39 PM
patience and the drop will come
Chant with me:
BLOW OFF TOP! BLOW OFF TOP! BLOW OFF TOP!
It's not a bad thing
I'll hedge or close soon, but not yet.
GD
#5
Data
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Posted 30 May 2007 - 01:49 PM
He's already cut rates unofficially. The repo rates have been 1/8 point lower than the official rate
for almost four months. Historically, they've fluctuated close to the Fed Funds rate. Guess his goal
is to support the dollar and provide cheaper funds at the same time.
#6
arbman
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Posted 30 May 2007 - 02:16 PM
No rate cut = too much money
rate cut = lack of liquidity
They can not cut rates on a pure liquidity driven rising market, this is an outright inflationary blow off. One thing is for sure, the rates are not quite stimulating the liquidity growth anymore, so it blows as far as it goes and then...
... crashes!
FYI...
#7
Mtrader
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Posted 30 May 2007 - 02:39 PM
Contagious is contained in China, far far away. We are happy to be here.
You are on your own. This is for demonstration only.
JV
JV
#8
Data
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Posted 30 May 2007 - 03:15 PM
The previous China drop was caused by the Japan rate increase which upset the
carry trade. Yesterday's drop was unrelated.
#9
pdx5
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I want return OF my money more than return ON my money
Posted 30 May 2007 - 03:45 PM
Kisacik may be right in predicting a crash sooner than later. However,
my gut feeling is US stocks are not in bubble territory and therefore a
"crash" is unlikely barring any unforeseen catastrophe. However I see a
grinding correction lasting several months is a good probability based
on all types of data I have observed recently.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule
#10
arbman
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Posted 31 May 2007 - 04:47 AM
Kisacik may be right in predicting a crash sooner than later.
Well it won't crash from the top, perhaps the market pulls back about 6-8% "very quickly" for the summer and then if it doesn't rally well into Aug, then there is a chance for another 8-12% rapid decline from an Aug high toward an Oct low. This can only happen if this high is a left translated one, actually it has the potential since SPX rallied over 60% annualized from the March lows. In other words, the last 40 wk cycle did about 240 points or less than 30% annualized from the June '06 low to Feb '07 high, this one is already 168 points in 1/3 of the time and getting more stretched. The air is getting pretty thin up here, yet it is likely to go on for another 30 points higher...
