Don't fight the FED

Discussion in 'Trading' started by acepowerdrive, Aug 13, 2009.

  1. acepowerdrive

    acepowerdrive Guest

    Well another trader's rule.

    FED rate is 0% and has done the job of 40% recovery from march lows and now FED will stop buying treasuries and stop buying stock.

    FED is the ultimately last lender of last resort and last buyer of the markets.

    anyone who thinks the FED isn't manipulating the markets vai goldman or Plunge protection team is a fool.

    FED and banks with it's easy credit and lending creatd this credit crisis....high risk investments overleveraged etc.

    this just shows how powerfull the FED is and isn't raising interest which is bearish for the market and economy. as the FED doesn't see economic recovery for years and is comfortable with raising interest as the economy is very very weak. even in 1982 bear market and 1987 crash 1989 and 1990 and 1974 FED interest was high in the 5% so FED forecast is right this is a deepest recession ever...if the FED was optimistic about the economy rates would be going higher. this could be japan long long deep recession.
  2. acepowerdrive

    acepowerdrive Guest

    none of these pros who study technical analysis have even mention that don't fight the fed rule...

    morons were talking about this market has no legs , and head and shoulder in june, and etc low volume...and miss one of the biggest moves in this suckers rally or whatver dead cat bounce rally,,a rally or super uptrend in march ..

    the 1% interest rates in 2002/2003 was also the catalys for the quickest recession 2001-2002 and also the cause of the real estate and stock market bubble 2006-2007 that crashed on it's own weight and increasing interest rates in 2007. so the fed does move markets for better or worse long or short.

    so now the FED has ran out of bullets and has to get rates to .25% almost zero but economy is getting worse....and even interest rates won't work this time and longer to work.

    well the fed is signalling they won't be buying treauries anymore nor propping up the markets anymore. the market will be making march lows again than...and will trade at true forces of supply and demand rather than being rigged by the market makers.

  3. acepower, you consider buying gold as fighting the FED?
  4. acepowerdrive

    acepowerdrive Guest

    The FED as a qausi institution is in jeopardy if it gets audited.

    the USD will not be the foreing reserve or need to

    as for gold it's most preservation of capital and i'm not interested in preserving capital ,,,need the cash for trading.

    When the FED issues notes from thin air it's basically making counterfeit receipts or counterfeit money. it's lending money it doesn't have or no assets to back up the is the reason the gold standard was removed... the US was running deficits from military and the 10 year Vietnam war.

    one of the reason the Vietnam war was ended was it was bankrupting the country into deep debt. the vietnam war didn't end from hippies protesting. it was for economical reasons.

    this war on terrrorism or US military and now the trillion dollar bailouts are horrifying the secretary of the treasury the guy looks stressed out after looking the balance sheet of the country. the US is broke.

    it seems the FED is now on the payroll of wall street and banking sector or even real estate...

    the home buyerss who are ripped off or overpaid on their homes now they can't afford to paying $100,000 more for that house or overpaid for stocks...etc. if it wasn't for market speculators flipping houses from easy credit etc. in the long run that overpayment of $100,000 is $200,000 over the life time of the home so in the long run the cheaper the house the better. now the problem people are broke and unemployed and it doesn't matter how low the interest is they don't have the money to buy.

  5. ?.......are you trying to say that you're "bearish"? :confused:
  6. acepowerdrive

    acepowerdrive Guest

    all these long traders will be shorting once trendline is broken..the longs and shorts will turn sides in a heart beat.

    a lot of these longs were short previously and now long... and will go short if trend is ended...

    i have some long and short positions...

    only reason i post here cause i'm bored,,there aren't that many traders who do this full-time

  7. ?......those who are "long" will get "short" AND those who are "short" will get "long"? :confused:
  8. S2007S


    I heard this back when the fed 1st started taking rates lower, that was when the markets were 50% higher, that saying is worthless.
  9. acepowerdrive

    acepowerdrive Guest

    that was when you should be shorting.

    destroy the FED don't fight it.

    FED isn't audited and for private institution to have the power to create money from thin air that is a lot of power.

    FED gives money to banks and investment banks and they in turn lend money to hedge funds.

    where do you think hedge funds like paulson get all their money to start a hedge funds...from the banks and investment banks like citigroup,bank of america or othe hedge funds..etc.

    if you borrow money from the FED don't pay it back..since it not even real money. better than robbing a bank---borrow money from the FED

  10. Profile For acepowerdrive

    Date Registered: 08-13-09

    Total Posts: 22 (22 posts per day)


    Welcome to ignore.
    #10     Aug 13, 2009