2 replies to this topic

[Cirrus]

Two things--shorts won't press their luck and longs may have already cut back in front of the meeting. I'm expecting a wild west type day tomorrow with some bleed through into Wed. There should be plenty of ST liquidy built up in front of the meeting and large swings or momemtum will possibly force some of it to be put to work--on either side of the market. FWIW I think financials are up the most today simply because shorts have been burned way too often and they don't want to play the Fed game.

[ogm]

Two things--shorts won't press their luck and longs may have already cut back in front of the meeting. I'm expecting a wild west type day tomorrow with some bleed through into Wed.

There should be plenty of ST liquidy built up in front of the meeting and large swings or momemtum will possibly force some of it to be put to work--on either side of the market. FWIW I think financials are up the most today simply because shorts have been burned way too often and they don't want to play the Fed game.

Treasury is paying down 40 bil in debt this week. Plenty of liquidity.

Everyone is expecting something from the Fed, but the reality is.. Of Course the Fed is aware of the situation, and of course they will do everything possible to maintain financial markets stability. They don't really need to say anything in the statement tomorrow.

There is enough fear built up already here.

I think whatever the Fed says, we'll sell on the news, and then rally again the next day and after that. If Financials will start bouncing the whole market will. And financials are deeply oversold and turning. I think the start of the rally will be slow and choppy at first.

Edited by ogm, 06 August 2007 - 12:12 PM.

[relax]

agree! no news will turn out to be good news just as long as there is no more negative credit news