might that be the "word" the "street" puts out to nail those of us who choose to act on such rumors???
I think the gap will fill, but not today...or Tuesday for that matter. I think we're retracing here, but not that much. Here's what I'm looking at. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1588461 width=600> Click on link below for full-size chart. I would expect a retracement to somewhere between 1477.75 (38.2%) and 1474.00 (61.8%), with 1476.00 (50%) being most probable. The trend remains up, and my next upside target would be 1492.75 -- not necessarily today, but not impossible, either. On a very light volume day, almost any price movement can happen. Then again, I might easily be wrong.
just finished reading Bernanke's speech. Interesting, I thought it was pretty balanced. He does not say anything about a rate cut although at this point it is safe to say the market is discounting it already. Any chance of a 50 point cut? "Because banks and thrifts kept the loans they made on their own books, they had strong incentives to underwrite carefully and to invest in gathering information about borrowers and communities. In contrast, when most loans are securitized and originators have little financial or reputational capital at risk, the danger exists that the originators of loans will be less diligent. In securitization markets, therefore, monitoring the originators and ensuring that they have incentives to make good loans is critical. " great I am waiting to hear the solution for that!! http://www.federalreserve.gov/boarddocs/speeches/2007/20070831/default.htm