Dow to end the day (12/16) up several hundred

Discussion in 'Trading' started by MrDODGE, Dec 16, 2008.

  1. no need to worry. 45 minutes b4 the close the buyers will step in as they have always done on fed meetings and drive stocks much higher into the close.
     
    #31     Dec 16, 2008
  2. S2007S

    S2007S


    Agree, the bulls have been extremely happy with these rate cuts however after a year of cutting rates it has done nothing and will continue to do nothing, they can lower them to 0% and it will prove nothing but a waste of time. The credit bubble that popped was formed by historical low interest rates and by the looks of it we are creating yet the same scenerio yet again.
     
    #32     Dec 16, 2008
  3. "Contrarianism is the new Conventional Wisdom."

    paraphrased from some guy named Soros.
     
    #33     Dec 16, 2008
  4. You're clueless. It takes up to 18 months for rate cuts to have an affect. There was also no credit bubble. There was a tiny real estate bubble and a subprime bubble but the vast majoirty of credit holders such as consumers with credit cards, small businsses, aren't defaulting. Houshold and consumer debt continues to rise, but it isn't a bubble as long as wages, personal income, and productivity continue to rise.
     
    #34     Dec 16, 2008
  5. JSSPMK

    JSSPMK

    Ever heard of the domino effect?

    <img src=http://www.ajc.com/shared-blogs/ajc/luckovich/luckovich0812.jpg>
     
    #35     Dec 16, 2008
  6. here we go. final 45 minute surge. I recommend not overtrading this market. Buy large cap tech and EWZ
     
    #36     Dec 16, 2008
  7. Wrong again.
    You really have no idea what your doing.
     
    #37     Dec 16, 2008
  8. Rex84

    Rex84

    wow nice rally, sell Mortimer sell!!!!
     
    #38     Dec 16, 2008
  9. This market is unstoppable. Large cap tech and EWZ FXI leading the rally.
     
    #39     Dec 16, 2008
  10. Cutten

    Cutten

    A bullet only works once and has no more effect after it's fired. Interest rate cuts on the other hand *maintain* their effect for the entire time they are kept low. It is more like a machine gun with infinite ammunition, than a non-auto with 6 bullets.

    Interest rates that are 0% now, and 0% in 6 months, are more stimulative than rates that are 1% now, and 0% in 6 months. "Running out of bullets" actually creates a more powerful stimulus than "saving" them.

    In other words, the gun/ammo analogy is possibly the most misleading analogy in the history of finance. Any commentator or central banker who uses it is mistaken.
     
    #40     Dec 16, 2008