Cramer claims this will be the largest 1-day point gain in history.....that'd be 500 points on the DOW. Also said we were set up for a 1000 point crash today and Monday if the fed had not stepped in.
Those that have followed B1S2 thread, or took the time to read a few pages, will know exactly what his line of thought is and how he approaches his trades. I doubt he wants to repeat his self yet again.
anyone else looking for a new low to be made yet ? as per my last post..... this up is the 4th wave.... the 5th wave should bring us to new low....... again..... could be wrong.....
So Bruce, since you know "exactly" what B1S2 is doing and referring to and is bored to death to repeat it--whould you please share with me his premise and where trades and stops were placed? DMartin
agreed 100%........ride the lightning intraday with position mindset.there is just too much there to be taking scalps. MMT....on Cramer.... when we take out the swing lo of 1375 in the fall or much sooner.....he`ll be behaving like a moron demanding the fed cut again & again until he is bailed out of his long positions in which he NEVER carries a stop. if we close on intraday lo`s today...expect him on sooner than that.
look at a chart from 2:00 pm yesterday. It looks like maybe somebody knew something. Nah, no one would ever front run a fed announcement, that would be unethical.
A little commentary on the rate cut......the Fed cutting the discount rate has no real world implications for turning the ship around in regards to the unwinding of trades my money managers, and has absolutely zero effect on the slowing economy. It will not "save" any type of mortgage lender or anyone else - the discount window has always been in existence, and anyone in the fixed income markets knows that its just "there" in worst case scenarios - in the real world, money is borrowed via federal funds sales between institutions. If you have to go to the discount window to borrow, you are in dire straits, and its basically game over for your shop - you'll pay ANY rate if you have to go there. The real significance, and the million dollar question....is this the Fed's way of sending the message that they are about to go into easing mode - and if they do, isn't it too late to turn the ship around, regardless of how many rate cuts are forth coming? What if the Fed just sent the world a message - and a very ominous one - that their hands are tied. Although it looks like they have been asleep at the wheel with the avalanche of proof staring them in the face that this economy is sliding into recession and about to see a slowdown ensue, they just might not (and some would argue, CAN'T) lower the federal funds rate. This discount move was a poor attempt to assuage fear and panic. Having interest rates so ridiculously low under Greenspan got us in this mess by creating massive asset inflation bubbles - is it realistic thay they will take rates that low again to solve the very problem they created? The financial and real estate markets need what is going on right now - trying to stop it is the wrong move. It is comeupance time, and the Fed needs to let the markets work themselves out. I don't, however, think they will have the resolve to let the markets unwind naturally. You can make the argument that the Fed wanted to take away the surprise of switching to easing mode - but I think its just another example of the Fed's ignorance. Everyone is trying to figure out if the Fed is actually going to go into easing mode - and it is NOT a forgone conclusion. The initial stock indices popping today on the news is short covering - we all know predicting is worthless, but I'm getting the feeling that all gains will be erased by end of day as underwater money managers use yesterday's comeback and today's pop as an opportune time to further liquidate positions.
Word was out that the Fed was having an emergency meeting. I guess the pros knew an emergency meeting woudl lead to something to help the market and they started going long. After the first few green bars the sheeple see it and add to it and it just steam rolls higher into the close. P.S. I did not get the word obviously but I am sure it got to the trading floors.