This time Fed may not be giving candy to tantrum throwing special kid. They may not cut rates or just cut 0.25 basis points and tell him to go and find this world on its own. Go take your temper tantrums elsewhere, you are not entitled to anything. Dollar is already weak, inflation is a threat, we better take care of that. You can't take the market down any worse as you have.. The Fed know the following facts : 1/Fed rate cuts have done nothing for the markets, we are back to the same levels where we were on Jan 22nd, prior to Fed rate cuts. Took 6 six weeks to undo that ? LOL. 2/ A full blown recession would not have blown away 1.25 basis points in Fed rate cuts in under 45 days! It does nothing for our perpetually pessimistic idiots. Go ahead bring the temple down. Just look at the charts on SPX, NDX, RUT their noses tightly wedged into bottom right hand corner...you are on your own sick boys...!
Rate cuts doing nothing for the market is nothing new. Check out 2001. http://tradesystemguru.com/images/stories/Newsletters/Blackman/Jan4-08/spxvsfedfundsrate-fig2.jpg
They seem not to work for our generation of doom and gloom crowd. We are back to where we were on Jan 22nd and now we are begging for more? Why should the Feds be eager to cut rates again? They can see the charts. I would not be surprised if nothing came out of Feds basket this time.
For all you Sharp ET traders, why don't you start compairing the Rate Cuts back from 2001 and see if you see a correlation. Also, look at when the feds Raised rates....and compaire that to the market. See any "Divergence"????? Did you notice that Rate Cuts, market sells, Rate Hikes Market rallies? Short, been short since Last Weds failed rally and will stay short. Will add on to position's in any rally. Recession is In play, not sure how long it will last. Oil is going higher, much higher. Consumer is cooked. Layoffs are going to skyrocket the next few quarters. Market should break 11000 and fall fast. However, no time frame I can only guess that we will rally at 11500 and sellers will come in strong, the strongest we have scene since 911,
Thanks for this chart! I am keeping this for ammo. I have been arguing with the perma bulls that keep pushing for more rate cuts, and do not realize this is the dumbest thing the FED can do. Its spiking commodities by killing the dollar. A recession is inevitable. Get it over with already.
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