11 replies to this topic

[ogm]

That the Fed has announced the rate cut on Opex before the open... Booo--freaking-hooo Looks like a lot of people got caught upside down. Good sign. Once again... Fed actions aren't about some short term traders and their positions.... This is about restoring market confidence and economic stability.. Whoever got caught uspide down.. better luck next time.

Edited by ogm, 17 August 2007 - 12:41 PM.

[TechSkeptic]

I believe they chose their timing for maximum impact. Since yesterday was already showing signs of technical reversal, they wanted to add to that upside momentum and guarantee that the reversal would indeed take place.

[ogm]

I believe they chose their timing for maximum impact. Since yesterday was already showing signs of technical reversal, they wanted to add to that upside momentum and guarantee that the reversal would indeed take place.

I think its quite the opposite.. We had technical reversal yesterday, because someone knew this was coming.
Look at the humangous volume in financials yesterday and the bid under the banks all morning, despite the market tanking.

[JAP]

I believe they chose their timing for maximum impact. Since yesterday was already showing signs of technical reversal, they wanted to add to that upside momentum and guarantee that the reversal would indeed take place.

I think its quite the opposite.. We had technical reversal yesterday, because someone knew this was coming.
Look at the humangous volume in financials yesterday and the bid under the banks all morning, despite the market tanking.

You actually think this BS is going hold the market up?

The more FED keeps interfering with these ridiculous bail-outs, the more they are saying something is very wrong. This is just a very short term band-aid.

[esther231]

That's what I think too. Banks were amazing yesterday. You could see it building and building. Someone knew. Which is good. Cause it showed up in the charts.

[IYB]

I believe they chose their timing for maximum impact. Since yesterday was already showing signs of technical reversal, they wanted to add to that upside momentum and guarantee that the reversal would indeed take place.

I think its quite the opposite.. We had technical reversal yesterday, because someone knew this was coming.
Look at the humangous volume in financials yesterday and the bid under the banks all morning, despite the market tanking.

I absolutely agree. Though I don't think it was as specific as "we have word that the Fed will cut the discount rate 50 bps shortly before the open Friday".... I definately think the "markets" were seeing this {general} action as imminent, and thus the very firm bids yesterday. TA just reads and interprets money flow so that we can make reasonable inferences about what's coming- both in the markets and fundamentally.

[OEXCHAOS]

Don't fight the Fed. I remember 1998. Owie... You've got a TON of Bears out there. Lot's of shorts. Lots of stubborn fundamental Bearishness. All that makes for big, long lasting rallies when the Fed cuts. Will it head back down? I suspect it may. In September or October. That's a lot of time and maybe a lot of points to wait. Mark

[SemiBizz]

I don't agree with the bullishness. The name of the game here is de-leverage liquidation. This is a band aid. Asia is not going to react positively to this, all Bernanke did is lose face with them.... Unlike the Chinese - when they say they are not going to bow to pressure and let their currency appreciate, they mean it. Bernanke just told the World business was so good he couldn't possibly cut rates a week ago... The Asians are smarter than this, that's why they didn't bite on the last minute rally we had last nite, and why they will be selling into any bump up on Sunday nite...

[rkd80]

We will see by next week whether this FED action was bs or not. Whatever gains we finish up with for today will inevitable be sold off, but just like in August a Fed sparked rally can be QUITE real and like Mark said - can cause a multi-month wait. The devil will be in the details next week as the sell-off should stop just short of where this rally began.

[selecto]

Fed had a 6:00 PM phone meeting. That would have had to have been set up during the day. Anybody who found out that a meeting was being scheduled, knew that it wasn't to raiase anything. Be interesting to know when the first scheduling calls went out - from yesterday's charts, looks like noonish. Critical times, as the spx is trying to fall back into the 4 year uptrend channel. Can't let that kind of disaster happen, lol.