With the upward trend today and the Fed rate cut I expect the Dow to rocket up to at least 9,000 by close. Does anyone really think the Fed will scare the market by going straight to zero? Half a point should be priced in but it won't be because the market wants to be bullish through the end of the year. The start of next year will probably be a whole different story.
If that's the case the end of the day would be a great time to start getting short. SRS is looking attractive
There is ZERO implication of "BULLISHNESS" with a Rate Cut. At this point the FEDs are out of tricks and the Smart Money Knows that. Volume is slowing and IMHO, Rate cut to zero will signal "Deflation", Japan Style.
If 50 points is priced in - Sell the news. They go with a 25 point cut, sell. Only way this rallies is the cut is a 75 point cut - buy. But why would the fed do that,?!?! They will have little to no ammo left. I expect dissapointment with the moves made today - flat to negative by close. Most likely scenario is they go with the predicted 50 point cut and give their dark and dreary forecast to which the market sells off. Tell me the last time the markets rallied when Bernake opened his mouth? July 13th?
The market rallies on ugly news that is worse than expected. Why do you think it won't rally on a Fed cut?
It will "Pop", but I doubt it will sustain the upward move after rate cut. Noise will follow, could spike but the news is bad period, FEDs are out of bullets. So, short term spike, sure, but I doubt we will push to 950.