The Feb. Fed-Funds Futures are already indicating a 50 basis point cut. Again, the FED is behind the curve, not ahead of it as everyone on this thread have been shouting. Yesterday's short-covering rally into the close ( anticipating Bernanke's "remarks" ) and today's further short-covering "spike" is over.
the bulls have nothing left but rate cuts.... slowing economy (check) slowing retail sales (check) TGT missed big time. Inflation (check) falling dollar (check) corporate profits slowing (check) Credit problems worsening (check) unemployment rising (check) foreclosures rising to nearly 2 million by the end of 2008 (check) no bottom in housing for another 5 years (check) credit card deliquencies rising faster than ever before (check) negative savings rate in the US (check) bulls have nothing left, bears have everything going for them right now and have for the last 2 year but the reason why the markets didnt show it is because of the liquidity that was pumping the markets higher for no reason but Greed.
I know its OVER, enter the bear market that I have been talking about for over 12 months now finally comes into play. Took some time but it finally happened.
Everybody want to be a contrarian. So many guys second-guessing who knows where the smart money is going? If we close near the low this PM tomorrow should be good for shorts. If we close near the high today tomorrow could be strongly higher. Many shorts will fold. Just a hunch.
Let's be REAL here, shall we? You have been talking out of BOTH sides of your mouth on ET for the last 2 years. Looks like you conveniently forgot about this post of YOURS: S2007S Registered: Aug 2006 Posts: 5227 4-27-07 12:43 PM
So why aren't the markets in rally mode? You're going to get your .50, or are you? That's what many here are really saying. In this current situation there are very few going to take a position about the next 6 months. Now, couple that with a Fed that's shtting the bed at every turn..... how does that build confidence? You can throw money into the streets if you want, but what good is it if people just go throw it under their mattress? Look at what gold is telling us and what that short cover pop did as well. Oil is selling off and gold is up. It's becoming a confidence issue. There are very few bull hands to pass shares off to. Markets can stay oversold for a long time. Good Luck!