Feds+ Treasury owns the Casino damn it! They will print more money, they will cut rates, they will inject liquidity, they will bail out Wall street firms. They will simply outright trade against you with unlimited resources and buy and sell SPX futures as if there is no tomorrow. Is there anyone stopping them? One thing is certain they won't let short seller hijack the markets or anyone for that matter, even a rogue nation or country. They let you make bets that's all. US financial markets are not free for all pay per view WWE Wrestle mania events.
In one corner: the Fed, PPT, Wall Street big wigs, etc. In the other corner: Reality. Place your bets!
I will chose the winning side: Feds+ Paulson commando units- they own the Casino. People think they can tinker with US markets and take them down. No No No.. it ain't going to happen.
wow good advice. You're so smart. However, where's this "tape" you speak of? I seem to be missing something. Tapes looking a little red. Tinker and take down markets? The guys who make the markets took the markets down you idiot. lol what is wrong with people on here. You're job is to trade...not have an opinion OR be a complete dumbass. Why are you bothering with either?
HedgefundTrader2 what you don't seem to get is this isn't just a game about short sellers vs. the all mighty Fed. Sure the fed will prop the market up as much as it can and they can't do it forever. And short selling may cause some rapid plunges but the market isn't going to tank because of short selling alone, people are going to start pulling their money from the market. People are going to stop investing for a number of reasons. First of all they will stop for no other reason than because the equities they are investing into are bad investments. Second of all people are going to pull money from the market because they need the cash to live. This concept that the fed can endlessly prop the market up is just plain ignorant. They are already starting to run low on tools. And sure they could start printing money, but even someone that seems so determined to see one side of the story must recognize that printing money is going to lead to inflation. Inflation will only feed this cycle. You also need to wake up the fact that recessions are natural and healthy for the economy. A recession isn't the end of the world nor the end of the market.
YOU seem not to get it. How many times SPX had the chance to blow past 1270 levels in last 3 months? I counted at least 6 times, yet it magically stops on dime. Never underestimate the Feds, they will never run out of tools. They have cut massive rates that have in turn created huge tons of money resources and fuel for the economy. Money market accounts only paying 2-3 % where do you think that horded cash is going to end up? Do you remember the last time Feds started cutting rates Greenspan only cut 0.5 point at a time , what happened afterwards? Rewind to circa 2001-2003. Feds created biggest bull market in equities and real estate. You eye Feds as some incompetent idiots who have not played this game for last 100 years. IF the Feds had not raised rates from 2003- 2005 about 18 times we should still have a sizzling real estate markets. Its their game, they turn the spigot on and off. BTW US financial markets are not some arbitrary random walk game. They are heavily guarded and controlled events. Presidents working group overseas such events and makes sure a smooth , stable and uneventful environment. Lets see if you can push SPX below 1270 anytime soon. Try shorting with all your puny capital, and will powers. Come on try lil bastards.
ah poor (wanna be) hft...you are showing your utter lack of market knowledge (again)...the fed started ctuung rates 1/01...when did the market finally bottom? October '03. the fed did not start a sustainable anything..they created the equity bubble in '98. the created the even more ridiculous real estate bubble in '01...also the mkt did pierce 1270 the last time we were down there, it traded @ 1255ish..the longer you keep hitting the support level the weaker it gets. if you think the fed cares about the 1270 level you are even more naive than is humanly possible. just keep blaming your total inability to whatever you are saying this week you do, no one is buying it here. I'm still shortfrom around 1372, my stop has not even come close to getting hit. owned as usual.