Civilization 1.0 Web 2.0 Smartists will dip into their credit cards to continue the eternal bull run. HUUUGE WHITE CANDLE! see? Dow down 20 points already...!
For what its worth i think this market will come in again. The market seems pumped up on speculation of another rate cut which i dont believe we will see in Dec.
.25 is 100% possible, .50 and its alot worse than what most think, a 50 basis point cut to me would signal they are about 99% sure of a recession happening or even being in one at this very moment. Also do not think for a second that more rate cuts will benefit this market, everyone thought this on Oct 31, everyone knows what happened after that.
I'm stunned at how much the market is hooked on the rate cut as the only reason for the upmove. Dismal, and I mean dismal news all day long and nothing is paid attention except the possibility of a rate cut. Like a junkie promised one last hit on the crack pipe at the expense of everything else. In big bold letters on Yahoo... Dow Soars 300 Points as Rate Cut Hopes Increase- AP And then....under that, Existing Home Sales Fall for Eighth Straight Month- AP Fed: Economy Loses Speed, Shopping Slows- AP Bear Stearns Cuts 4 Percent of Staff- AP
why would we gap down from extremely oversold conditions? A better play might be to sell the open tommorow, just because this squeeze is so tremedous, its highly likely we close at highs and gap up tommorow.
This is a great lesson I'm going to try to remember on how markets do not follow logic, rather they try to screw the maximum number of short term retail participants on one side of the trade. Remember all the bad news? And how everyone was selling and wouldn't buy? Now today, we get a barrage of more bad news and all it takes is 1) An untraceable speculative rumor that no one will ever follow up on and 2) Very deep pockets to turn the screws on all the shorts piling in on sentiment.
the dow is up almost 400 points and there is not a bull in sight! has anyone considered for a moment that staff of the federal reserve, a group of very highly accomplished economists might be more correct than a chatroom full of doubters and flamers? has anyone considered that injecting liquidity and cutting the rates to allow banks and businesses to function and letting the dollar go to narrow the trade deficit might just be a good idea? have we considered that buying 500 excellent companies in fortress america while the dollar is cheap and the stock market is down 10% might be an attractive prospect for foreigners? need i continue?
didnt you start a whole thread about quitting trading? Perhaps, if you are struggling, you should GET OFF ET and focus. Posts like this, whether or not it comes to fruition, are retarded to make.