Is this gonna give us a nice 200-300 point rally on the Dow today? Or will it just be a boring, non event (flat market, no impact) I'm waiting for the next huge move up but looks like it'll need some 'help'
Argggh . . . The only thing that matters is the trend and S/R whether it is horizontal or diagonal Now form a concrete plan to trade it
My read: -- The FED has limited parachutes (in lowering rates and purchasing low-risk paper), and feels it deployed these things properly to address the financial crisis. -- Exiting the financial crisis is important not only for price stability ("fighting inflation" on the upside) but also to assuage downside ("too-tight capital") fears. -- The FED has started gathering/bundling the interest rate parachute(s). -- The FED has previously announced its intention to gather the QE 'paper-purchase' parachute, but with no date(s). == Thusly: -- They keep an interest rate hike off the table -- prices (wholesale/retail) and wages don't uniformly support a higher rate. This is "The Economy".... -- "The Market" though (with a continuing collection of All-time Highs) supports the gathering/bundling-up of putting the Balance Sheet assets back into the financial markets. == IF THE FED DOES announce not just an intention, but a recipe (including dates and target principle amounts), the market will plunk down -- 0.00% -- 0.50% by tomorrow close. == IF THEY DON'T, but simply mouth more platitudes to the 'necessity of freeing policy tools for foreseeable future policy actions,' the market pops 0.5% to 0.75% tonight. Disclosure: I'm realllllly tight on top, and am sweating bullets.
I think people have finally woken up. It's taken them 10 years of relentless upside to realise , though It only took me about 5 years before I realised how this market likes to move!! lol