that is my frearless forecast !
but take heart ONLY for a churn or shallow upside correction: they will think they have done what they can do and the pressure will be off of them for a good while.
let me ask YOU what YOU think. do you believe a dramatic move, such as i predict from the fed, will stop the decline? your opinions, with elaboration, are seriously sought.
next week fed will drop the funds rate by 1/2, the discount rate by a full point
Started by
humble1
, Aug 10 2007 06:15 AM
2 replies to this topic
#2
nicolasillo
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- Traders-Talk User
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Posted 10 August 2007 - 06:21 AM
maybe for a few days or even a day, the decline will resume as it this will just confirm how big the problem is
that is my frearless forecast !
but take heart ONLY for a churn or shallow upside correction: they will think they have done what they can do and the pressure will be off of them for a good while.
let me ask YOU what YOU think. do you believe a dramatic move, such as i predict from the fed, will stop the decline? your opinions, with elaboration, are seriously sought.
#3
ogm
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- Traders-Talk User
- 13,780 posts
Member
Posted 10 August 2007 - 06:23 AM
that is my frearless forecast !
but take heart ONLY for a churn or shallow upside correction: they will think they have done what they can do and the pressure will be off of them for a good while.
let me ask YOU what YOU think. do you believe a dramatic move, such as i predict from the fed, will stop the decline? your opinions, with elaboration, are seriously sought.
If the Fed provides liquidity it will ultimately stop the decline. The momentum may carry it a bit as leveraged hedgehogs unwind their positions under mounting margin calls, but someone will be buying on the other side of that trade.
I think the real panic here is the unwinding of heavily leveraged hedgefunds. Thats what's pressuring the market.
Carry trade, Margin calls and so on. Basicaly leverage. At some point it unwinds and the markets go on their merry way.
