My opinion is its not over. The injections from the Fed and even a full blown rate cut will only be a band-aid. I think this will be just a dead cat bounce. I live in SoCal and can tell you that the economy has been pretty bad here for all of 2007 with housing melting down. Major employers like New Century either going out of business or laying people off hundreds or thousands at a time. People who bought half-million dollar condos are seeing them drip back down to 1999 prices. So much money and hope seemingly lost. How many of you still think you can trade for a living?
Rate cut and all that is baked in the market right now. I for one don't expect a significant rise if they cut rates at next meeting. That would be too easy to predict right? Once that passes and we go a little higher, it will be time for other global markets like Japan and Europe to raise rates which they are putting off. Should of been done by now IMHO.
Don't fight the FED...rate cuts a comin....markets a runnin! Mkts up or down...doesn't really matter, though I trade a flat to down market much better then a run away bull market.
rates cuts for what reason??? falling dollar and inflation and you want a rate cut, good luck. Its the only CATALYST the bulls have left.
Are you illiterate! Can you read? Perhaps hooked on phonics might help you with your reading comprehension! To recap, I said that I trade better in a flat to down market! Now, Where did I ever say I want a rate cut? Prior to that, I said that you don't want to fight the FED, and rate cuts are a comin'. Why....because the market says so. Perhaps Uncle Ben has a an adjustable ARM that's getting ready to reset, and he wants a better deal? Maybe the FED is concerned about a recession? Perhaps they worry about credit market turmoil sending the entire economy into a tailspin. I could continue to speculate, but I try not to reason why, I just watch, then sell and buy!
Fed bends rules to help two big banks Might be nothing, or it might be time to queue up Ride of the Valkyries as Helicopter Ben assembles the 'copters into position. I love the smell of greenbacks in the morning.