3 replies to this topic

[thespookyone]

The economy is growing a bit faster, good news-but, by the end of the day will it be good for the market? This market has climbed the wall of worry in an easily seeable fashion, each bit of bad news brings another bump up. It will be fun to see today, after this report is mulled over-what actual good news does for the market. I know, the number wasn't huge, and everyones initial perception will be "goldilocks scenario", but, much like an "earnings whisper" weren't people in general thinking it would come out much lower? Although the case for a rate cut has been smoked for some time, it seems that the hope of one has remained a market driver. The more this hope is smoked, the closer we move to a short term correction. Spooky

Edited by thespookyone, 01 June 2007 - 08:29 AM.

[redfoliage2]

The economy is growing a bit faster, good news-but, by the end of the day will it be good for the market? This market has climbed the wall of worry in an easily seeable fashion, each bit of bad news brings another bump up. It will be fun to see today, after this report is mulled over-what actual good news does for the market. I know, the number wasn't huge, and everyones initial perception will be "goldilocks scenario", but, much like an "earnings whisper" weren't people in general thinking it would come out much lower? Although the case for a rate cut has been smoked for some time, it seems that the hope of one has remained a market driver. The more this hope is smoked, the closer we move to a short term correction.

Spooky

It's not a good news as it's inflationary and a rate cut is hopeless now.

[thespookyone]

The rate cut has been hopeless for some time. I was merely saying I wanted to see how the market reacted to good news-more jobs. It has been very clear from the reaction to major reports that the general public has still harbored hopes of a rate cut-the less likely it becomes, they will slowly start to believe what has been the truth for some time-and stop buying this market, for a moment, imho.

[relax]

exactly!

so what's next - recession is the only thing which can truly kill this market

Housing supports the recession argument - whereas spending still seems to be solid

The rate cut has been hopeless for some time. I was merely saying I wanted to see how the market reacted to good news-more jobs. It has been very clear from the reaction to major reports that the general public has still harbored hopes of a rate cut-the less likely it becomes, they will slowly start to believe what has been the truth for some time-and stop buying this market, for a moment, imho.